Question: 5. Suppose Maxwell, Corp. (Maxwell) a midsize, privately held company has the following data: - Five million shares outstanding. - Free cash flow of $24
5. Suppose Maxwell, Corp. (Maxwell) a midsize, privately held company has the following data: - Five million shares outstanding. - Free cash flow of $24 million, which is expected to grow at a constant rate of 5%. - Maxwell's. financial statement shows short-term investments of $100 million, preferred stock of $50 million and $200 million in long term debt. - Maxwell's WACC is 11%. Based on the above, please answer the following questions ( 5 points) a) What type of claims do Maxwell's stockholders have as equity investors? b) How can Maxwell use its free cash flow? c) What does Maxwell's WACC mean
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