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Naughty Droid's current free cash flow is $100 million that is expected to grow at a...

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Naughty Droid's current free cash flow is $100 million that is expected to grow at a constant annual growth rate of 6%. Total debt is $300 million and the company's WACC is 11.5 %. What is Naughty Droid's value per share of common stock if it has 20 million shares of common stock outstanding? Naughty Droid's current free cash flow is $100 million that is expected to grow at a constant annual growth rate of 6%. Total debt is $300 million and the company's WACC is 11.5 %. What is Naughty Droid's value per share of common stock if it has 20 million shares of common stock outstanding?

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To calculate Naughty Droids value per share of common stock we can use the Gordon Growth Model also ... View the full answer


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Corporate Finance A Focused Approach

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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