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7) (8 pts) Assume Company HH has current Free Cash Flow from Assets of $25 estimate that the Free Cash Flow (FCF) next year will

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7) (8 pts) Assume Company HH has current Free Cash Flow from Assets of $25 estimate that the Free Cash Flow (FCF) next year will grow by 6%, and the following grow by 5%. a) What is your estimate of the Company's FCF for the next three years? year F After year 2 the company's FCF is expected to grow at a constant rate of 4%. CF will FCF yr. 1 FCF yr. 3 b) What is your estimate for the Market Value of the Assets at the end of Year 2 if you assume Company HH's WACC is 6.3%? Value of Assets yr. 2 c) What is your estimate of the Market Value of the Assets today? ue of assets today- d) If Company HH has $400 million in debt, what is your estimate of the per share price of common stock if HH has 10 million shares of stock outstanding

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