What is the estimate of stock price based on firm valuation

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A company had free cash flows of $556 million last year. Free cash flows are expected to grow at 2.5% per year. The WACC for the firm is 7.9%. They currently have $7.7 billion in debt outstanding, and have 267 million common stock outstanding. The company has 58 million preferred stock outstanding, that currently trade at $33.

Problem 1: What is the estimate of the stock price based on the firm valuation model?

Reference no: EM132706834

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