Question: You are attempting to value DEF Industries using a discounted FCF approach however, the company does not curently produce any free cash flow. The company
You are attempting to value DEF Industries using a discounted FCF approach however, the company does not curently produce any free cash flow. The company forecasts that it will produce FCF in 3 years of $175 million and that is expects to grow that free cash flow at 4% for the foreseeable future (assume forever). If the company's cost of capital is 10%, what is the value of the company's stock today if they have net cash of $150 million and shares outstanding of 10 million? Round your answer to 2 decimal places and exclude the $ sign.
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