Use the Information for the Question(s)below

question 45

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 $200 million of debt and 8 million shares of stock outstanding,then the share price for CCM is closest to:

• A)$49.50.
• B)$12.50.
• C)$19.35.
• D)$24.50.

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Definitions:

Secondary Conditioning

A phenomenon in classical conditioning where a stimulus that becomes conditioned as a CS is used to condition a new stimulus.

Spontaneous Recovery

A phenomenon in conditioning where a previously extinguished response re-emerges after a period of no exposure to the conditioned stimulus.

Respondent Behavior

A type of behavior that occurs in response to specific stimuli and is conditioned by the environment, as seen in classical conditioning.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, in the context of operant conditioning a type of learning process.