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Business, 08.10.2020 14:01 jyow6688

River Enterprises has $505 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $14 million. They are expected to generate $190 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 13%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher (in dollars) would the price per share be if you are right

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River Enterprises has $505 million in debt and 22 million shares of equity outstanding. Its excess c...
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