4.1 Consider the following data: End of Year 1 2 3 4 5 (million $) Profit after...

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4.1 Consider the following data:

End of Year 1 2 3 4 5

(million $)

Profit after taxes 5 6 8 10 11 Free cash flow 0 0 0 5 8 Continuation value of equity 120 Stockholders’ required return on equity = 17%.

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