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3. You have been assigned the task of using the corporate, or free cash flow, model to estimate a company's intrinsic value. The firm's WACC

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3. You have been assigned the task of using the corporate, or free cash flow, model to estimate a company's intrinsic value. The firm's WACC is 20%. The next three years of free cash flow are forecasted to be $200 million, $300 million, and $350 million, respectively. After the third year, the free cash flows are expected to grow at a constant rate of 5% a year thereafter. If the company has $400 million of long-term debt and preferred stock, and it has 50 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock

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