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In: Finance

Calculate what you think the share price for company X should be given the following information...

Calculate what you think the share price for company X should be given the following information and modelling firm value as a perpetuity with growth: Cash Flow From Operations= 15,500m
Capital Expenditure= 4,600m
Interest Expense= 950m Corporate
Tax= 30% Growth rate = 2% every year
Cash on Balance Sheet = 6,200m
Number of Shares = 5,000m
Total Debt = 8,000m
Total Equity= 90,000m
Cost of Equity re= 9.5%
Cost of Debt rd = 4%
If the share currently costs $12 in the market, what action would you take?

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