The free cash flow to the firm is $185 million (FCFF0). The interest expense to...
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Finance
The free cash flow to the firm is $185 million (FCFF0). The interest expense to the firm is $16 million. The tax rate is 35%, the net debt of the firm increased by $25 million, the FCFE is expected to grow at a constant rate of 3%, and the cost of equity is 11%? If the firm has 100 million shares outstanding, what is the fair value of the stock price?
Multiple Choice
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$21.68
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$25.70
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$23.97
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$24.95
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