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Selected information for Pruitt Environmental Science Inc. is shown below: Short-term investments $30 million Total...

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Finance

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Selected information for Pruitt Environmental Science Inc. is shown below: Short-term investments $30 million Total Assets: $500 million Short-term debt: $70 million Long-term debt: $120 million Retained earnings: $100 million Shareholder's equity: $150 million Shares outstanding: 1 million Free cash flows are expected to be the following: $20 million in Year 1,$5 million in Year 2 and $8 million in Year 3. Growth rate after year 3 is expected to be 5%. The required return on equity is 11%, the WACC is 8%, and the unlevered cost of equity is 9%. Use the CORPORATE VALUATION model to find the intrinsic value of Pruitt's per share stock price. a. $91.43 b. $100.57 c. $110.63 d. $121.69 e. $133.86

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