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Please help by showing me how to work the following problem and figuring the correct answer to the following:
Based on the following current information, what is the value of a share of common stock in Corporation A? After-tax operating income = $500 million Depreciation expense = $100 million Capital expenditures = $200 million No change in net working capital Free cash flow is expected to grow by 6% per year Cost of equity = 14% WACC = 10% Market value of debt = $3 billion The company has 200 million shares of common stock outstanding |
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