What is the value of the stock price today

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Problem

Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. Year 1 2 3 4 5 FCF -$22 $38.6 $43.9 $52 $57 The weighted average cost of capital is 10%, and the FCFs are expected to continue growing at a 4% rate after Year 5. The firm has $26 million of market-value debt, but it has no preferred stock or any other outstanding claims. Get the instant assignment help. There are 20 million shares outstanding. What is the value of the stock price today (Year 0)?

Reference no: EM133910329

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