Question

AgPro is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 7% per year. If the weighted average cost of capital is 12% and AgPro has cash of $105 million, debt of $50 million, and 40 million shares outstanding, what is AgPro's expected current share price?

2 4 Free Cash Flow 8 million 11 million 15 million 20 million illo 15 million 20 mi

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