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:

Beta Waves

Brain waves that are present during awake, alert states of consciousness and are associated with concentration, arousal, and cognition.

Beta Waves

Brainwave patterns associated with active, alert state of mind, characteristic of waking consciousness.

REM Sleep

A sleep phase characterized by rapid eye movement, during which dreams often occur, and the body experiences decreased muscle tone.

Dreaming

A collection of mental images, ideas, and emotional experiences that happen during sleep.