Sims Manufacturing is expected to generate $180 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Sims has no debt or preferred stock and its required rate of return is 11%. If Sims has 50 million shares of common stock outstanding, what is the stocks value per share?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Sims Manufacturing is expected to generate $180 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Sims has no debt or preferred stock and its required rate of return is 11%.

If Sims has 50 million shares of common stock outstanding, what is the stocks value per share?

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