2. Corporate Valuation Salomon is expected to generate $125 million in free cash flow next...
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Finance
2. Corporate Valuation Salomon is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Salomon has no debt or preferred stock, and its WACC is 10%. If Salomon has 60 million shares of stock outstanding, what is the stock's value per share? Create a timeline like the one in slide 9.26 Use the Corporate Valuation Model to Find the Value of the Firms Operations.
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