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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Kohwe Corporation plans to borrow $ 52.2 million to finance a new investment. The firm will pay interest only on this loan each​ year, and it will maintain an outstanding balance of $ 52.2 million on the loan. Suppose that​ Kohwe's corporate tax rate is 40 % and expected free cash flows are $ 9.9 million each year. Kohwe currently has 5 million shares​ outstanding, and it has no other assets or opportunities. Suppose the appropriate discount rate for​ Kohwe's future free cash flows is 8.4 %. What is​Kohwe's share price today if the investment is financed with​ debt?
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