Question: An analyst knows with certainty that Skipper Inc. will exist for two years and have the following cash flows per share: Year 1 Year 2

An analyst knows with certainty that Skipper Inc. will exist for two years and have the following cash flows per share: Year 1 Year 2 Revenue $100 $100 Costs $ 80 $ 80 New Cash Flow $ 20 $ 20 a) What is the stock price of Skipper Inc., if the opportunity cost of capital is 8 percent?

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