Use the Information for the Question(s)below

question 96

Multiple Choice

Use the information for the question(s) below.
You expect CCM Corporation to generate the following free cash flows over the next five years: Following year five,you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted average cost of capital is 13%.
-If CCM has $150 million of debt and 12 million shares of stock outstanding,then the share price for CCM is closest to:

• A)$49.50.
• B)$11.25.
• C)$20.50.
• D)$22.75.

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Definitions:

Drops/Ml

A unit measurement commonly used in medicine and pharmacy to quantify liquid drugs, indicating the number of drops per milliliter.

D₅W

An abbreviation for a medical solution called Dextrose 5% in Water, a form of glucose solution used in intravenous therapy for nutrition and hydration.

Infuse

To introduce a substance into something else, such as infusing a fluid into the body through a vein.

Dialysis Fistula

An artificially made passage between an artery and vein, typically in the arm, used for access during hemodialysis treatment for kidney failure.