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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 $200 million of debt and 8 million shares of stock outstanding,then the share price for CCM is closest to:
Stated Value
The value assigned to no-par-value stock by the board of directors of a company, which can then be used as the basis for accounting and legal purposes.
Dividends in Arrears
Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued on common shares.
Cumulative Preferred Stockholders
Investors holding a type of preferred stock that accumulates dividends in arrears should the dividends not be declared in any given period.
Non-Participating
Refers to insurance policies or investment products that do not provide dividends or bonuses to policyholders or investors.
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