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1. You have been asked to do a discounted cash flow valuation of a firm and have been given the following partial inputs to the

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1. You have been asked to do a discounted cash flow valuation of a firm and have been given the following partial inputs to the valuation. Year Growth rate 20% 20% 20% 5% EBIT (1-t) 100 120 144 151.2 Cost of Equity 15.00% 14.50% 14.00% 12.50% Cost of Debt 7% 7% 7% 7% Debt Ratio 10% 20% 30% 40% Return on Capital 25% 25% 25% 15% The firm has a tax rate of 40%. Estimate the value of the firm today. (5 points)

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