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:

Protists

Refers to a diverse group of eukaryotic organisms, mostly unicellular, that are not animals, plants, or fungi.

Classified

The process of organizing or categorizing items or information based on shared qualities or characteristics.

Aquatic Predators

Organisms that live in water environments and obtain their energy and nutrients by hunting and consuming other aquatic organisms.

Radiolaria

Heterotrophic single-celled protists with a porous shell of silica and cytoplasmic extensions.