Use the Information for the Question(s)below

question 77

Essay

Use the information for the question(s)below.
You expect DM Corporation to generate the following free cash flows over the next five years: Beginning with year six,you estimate that DM's free cash flows will grow at 6% per year and that DM's weighted average cost of capital is 15%.
-If DM has $500 million of debt and 14 million shares of stock outstanding,then what is the price per share for DM Corporation?

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Definitions:

Information Flows

The movement of information between entities through various channels and methods, essential for decision-making and operations in organizations.

Internal Functions

Operations or activities that are carried out within an organization rather than outsourced to external parties.

External Sources

Information or resources obtained from outside an organization or individual's immediate environment.

Online Reverse Auctions

Digital marketplaces where suppliers bid to sell their goods or services to a buyer, with prices typically decreasing over time, often used to enhance competitiveness and reduce costs.