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Use the Information for the Question(s)below

question 77

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Use the information for the question(s)below.
You expect DM Corporation to generate the following free cash flows over the next five years: 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? 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?


Definitions:

Service Level

A measure of the quality of service provided, often defined as the percentage of customer demands that are met on time.

Waiting Time

The duration a person or object spends waiting before a service is received, often analyzed in operations management and customer service strategies.

Service Rate

The rate at which service is provided to customers, often measured in customers per unit of time.

Waiting Time

The amount of time a person or item spends waiting to be processed or receive service.

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