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Business, 06.05.2021 23:20 Quaneshiaa

Our acquisition target is a privately held company in a growing industry. The target has recently borrowed $200 million to finance its expansion; it has no other debt or preferred stock. It pays no dividends and currently has no marketable securities. We expect the company to produce free cash flows of -$12 million in one year, $35 million in two years, and $55 million in three years. After three years, free cash flow will grow at a rate of 7%. Its WACC is 15% and it currently has 17 million shares of stock. Find price per share. Group of answer choices 15.34 19.76 23.56 17.96

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