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:

Comprehensive System

An inclusive and thorough framework or method, often used to describe a complete approach to solving a problem or managing a process.

Big Five

A model describing five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Sympathy

The feeling of compassion or concern for the hardships that another person encounters, often leading to a desire to alleviate their suffering.

Agreeableness

A personality trait that involves being kind, empathetic, cooperative, and considerate of others.