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What is a fair value for the firm shares

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Jasper Energy is a growing company with $10 million of debt at a before tax cost of 6%, and it pays 30% corporate taxes. The firm's debt-equity ratio is 0.5 and there are 3 million shares outstanding with a cost of capital of 12%. If the firm expects to have $2 million of free cash flow, and a growth rate of 4%, what is a fair value for the firm's shares?

Reference no: EM132799663

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