Heavy metal corporation has 2 million in excess cash 35


Heavy Metal Corporation has $2 million in excess cash, $3.5 million in debt and is expected to have free cash flow of $12.5 million next year. Its FCF is then expected to grow at a rate of 2.5% forever. If Heavy Metal’s WACC is 10%, and it has 3.2 million shares outstanding, what should the price of Heavy Metal’s stock be?

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Financial Management: Heavy metal corporation has 2 million in excess cash 35
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