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:

Bias-free Language

Language that avoids bias, stereotypes, or expressions that discriminate against groups of people based on race, gender, socioeconomic status, and other characteristics.

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The physical distance individuals prefer to maintain between themselves and others to feel comfortable and safe.

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The non-verbal signals and cues used in North American cultures to communicate feelings, intentions, or messages.

Self-concept

An individual's understanding and perception of themselves, built from experiences and feedback from the environment.