An analyst is estimating the intrinsic value of Carter Technologies' stock. The analyst has estimated Carter's free cash flow for the next year as $25 million. The analyst also estimates that the company's free cash flow will increase at a constant rate of 8 percent a year and that the company's WACC is 10 percent. Carter has $450 million of long-term debt and preferred stock, and 25 million common shares outstanding. What is the estimated per-share price of Carter Technologies' common stock?

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The Answer of An analyst is estimating the intrinsic value of Carter Technologies' stock. The analyst has estimated Carter's free cash flow for the next year as $25 million. The analyst also estimates that the company's free cash flow will increase at a constant rate of 8 percent a year and that the company's WACC is 10 percent. Carter has $450 million of long-term debt and preferred stock, and 25 million common shares outstanding. What is the estimated per-share price of Carter Technologies' common stock?

An Analyst Is Estimating the Intrinsic Value of Carter Technologies