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4 . A company had $ 1 7 of sales per share for the year that just ended. You expect the company to grow their

4.A company had $17 of sales per share for the year that just ended. You expect the company to grow their sales at 6 percent for the next five years. After that, you expect the company to grow 3.75 percent in perpetuity. The company has a 15 percent ROE and you expect that to continue forever. The company's net margins are 5 percent and the cost of equity is 8 percent. Use the free cash flow to equity model to value this stock.

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