Anderson Corporation expects to generate free-cash flows of $500,000 per year for the next five...
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Finance
Anderson Corporation expects to generate free-cash flows of $500,000 per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of 7 percent per year forever. If the firm's average cost of capital is 14 percent, the market value of the firm's debt is $600,000, and Anderson has a half million shares of stock outstanding, what is the value of Anderson's stock?
Group of answer choices
$5.43
$8.01
$10.17
$11.57
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