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What the firm estimated intrinsic value of common stock is

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Problem 1: A firm's end-of-year free cash flow is anticipated to be $5 million. The firm's free cash flows are expected to remain constant forever. The firm's weighted average cost of capital is 15 percent, and the firm has 3.5 million common stock outstanding shares. Only common stock is in the firm's capital structure. The firm's estimated intrinsic value of its common stock per share is $. Calculate to two decimal points using the following formula: PV = ((FCF / (WACC - g)) - total debt) / common shares

Reference no: EM132776975

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