The free cash flow to the firm is 300 million in


The free cash flow to the firm is $300 million in perpetuity, the cost of equity equals 18% and the WACC is 16%. If the market value of the debt is $1,000 million and there are 122 million shares outstanding, what is the value of a share of stock?

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Finance Basics: The free cash flow to the firm is 300 million in
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