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Given Are the Following Data for Outsource Company: PV (Of

Question 30

Multiple Choice

Given are the following data for Outsource Company: PV (of FCFs for years 1-3) = $35 million; PV (horizon value) = $65 million. Suppose that the market value of the debt = $30 million and the number of shares outstanding = 5 million. Calculate the share price.


A) $20
B) $14
C) $13
D) $6

Correct Answer:

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