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A Firm Has 120,000 Shares of Stock Outstanding, a Sustainable

Question 73

Multiple Choice

A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value would you place on a share of this firm's stock if you require a 14% rate of return?


A) $48.09
B) $52.96
C) $54.02
D) $61.58

Correct Answer:

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