Use the table for the question(s) below.
-General Industries is expected to generate the above free cash flows over the next five years,after which free cash flows are expected to grow at a rate of 3% per year.If the weighted average cost of capital is 8% and General Industries has cash of $10 million,debt of $40 million,and 80 million shares outstanding,what is General Industries' expected current share price?
Definitions:
Interest Rate
The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.
Issued Capital
The total value of a company's shares that have been sold to shareholders and are currently outstanding.
Market Value
The current price at which an asset or service can be bought or sold in the market.
Consultation Fee
A fee charged by experts to provide advice or services in their field of expertise.
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