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Suppose General Foods has decided to enter the soda business and they will require additional capital....

Suppose General Foods has decided to enter the soda business and they will require additional capital. Management will finance the project by borrowing $100 million and by haulting dividend payments. Management forecasts that free cash flow for the next two years will be -$50, and $35 million. After year 2 the cash flows will grow at a rate of 4%. The current WACC for General foods is 11.5%. What is the firms price per share given there are 50 Million Shares outstanding?

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