Camper,Inc. is interested in acquiring Baxter Corp. Baxter has 30 million shares outstanding. Its WACC is 11% and the risk free rate is 4%. Baxter has $5million in debt. Baxter's free cash flow is $20 million annually and is expected to grow at a constant rate of 5% per year. Calculate the intrinsic value of Baxter's stock, using the formula Vop = FCF0(1+g)/WACC - g.
- $295 million
- $328 million
- $345 million
- $350 million
- None of the above