What is the market value of the samppel equity

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Reference no: EM132070153

Today is December 31, 2017. Use the following information that applies to Samppel Corporation to calculate what should be the company’s stock price today. (Corporate Valuation Method)

After-tax operating income [EBIT(1 – T)] for 2016 is expected to be $1,150 million

The depreciation expense for 2016 is expected to be $110 million

The capital expenditures for 2016 are expected to be $650 million

No change is expected in net working capital

The free cash flow is expected to grow at a constant rate of 7% per year

The required return on equity is 15%

The WACC is 9%

The market value of the company’s debt is $3.5 billion

300 million shares of stock are outstanding

What is the market value of the Samppel’s equity?

Reference no: EM132070153

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