Question: please help, show work 8 pts You are an analyst in a major investment bank and have been assigned the task of determining the share
8 pts You are an analyst in a major investment bank and have been assigned the task of determining the share price of Foodmart, a national supermarket chain. The stock beta is 1.286, Rf-3% and Rm-10%. The cost of debt is 6.82%. The tax rate is 34% and the firm is 40% debt financed. Calculate the WACC for Foodmart. The firm's expected cash flow for this year is $60 million. After considerable analysis you have concluded that cash flows will grow at 6% per year until year 5 followed by 3.5% forever. The firm has $300 million in debt and 42 million shares outstanding. Calculate the target price. Show all work
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