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1- What is the FCF in Year 5? 2- What is the terminal value (TV) of the firm at the end of year 5? 3-
1- What is the FCF in Year 5?
2- What is the terminal value (TV) of the firm at the end of year 5?
3- What is the total firm value today?
Your analyst has built the following spreadsheet for DCF analysis of the company you are interested in buying. Somehow there are some spaces that are blank and you cannot reach your analyst. (You can assume that all the calculated numbers are correct.) Growth Rate in Year 1-5 7% Growth Rate after Year 5 4% Discount rate in Year 1-5 9% Discount rate after Year 5 8% Year 4 FCF 10 10.71144912.25043 PV Year 1-5 $44.22 TV at the end of Year 5 Firm Value todayStep by Step Solution
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