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Business, 17.12.2019 02:31 oofoofoof1

River enterprises has $494 million in debt and 22 million shares of equity outstanding. its excess cash reserves are $ 16 million. they are expected to generate $195 million in free cash flows next year with a growth rate of 2% per year in perpetuity. river enterprises' cost of equity capital is 13%. after analyzing the company, you believe that the growth rate should be 3% instead of 2%. how much higher (in dollars) would the price per share be if you are right? if the growth rate is 2%, the price per share is $ nothing. (

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River enterprises has $494 million in debt and 22 million shares of equity outstanding. its excess c...
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