The market value of debt is 300000 the market value of

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Patrick Company expects to generate free-cash of $120,000 per year forever. If the firm's required return is 12 percent, the market value of debt is $300,000, the market value of preferred stock is $70,000, and the company has 100,000 shares of stock outstanding. What is the value of Patrick's stock?

i) $6.30
ii) $10.00
iii) $7.00
iv) $9.70

Reference no: EM13479194

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