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:

Private Trial

An ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute.

"Rent-a-Judge"

A private adjudication service where parties in a dispute pay for a retired judge or private arbitrator to resolve their case outside of the public court system.

Dispute Resolution

The procedure for resolving disagreements or conflicts between parties, which can include negotiation, mediation, or arbitration.

Mediation

A form of dispute resolution where a neutral third party (mediator) helps the disputing parties come to a mutually acceptable agreement.