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:

Nature

Encompasses the natural world, including plants, animals, the landscape, and other features and products of the earth, as opposed to human creations.

Limiting Abiotic Factors

Non-living environmental elements that restrict the growth, distribution, or abundance of organisms, such as temperature, water availability, and nutrients.

Biotic Potential

The upper limit of reproductive ability for an organism when conditions in the environment are perfect.