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A company has expected FCF next year of 1 3 million. FCF will grow for 3 years at 1 0 % ( years 2 ,

A company has expected FCF next year of 13 million. FCF will grow for 3 years at 10%(years 2,3, and 4), for the following 2 years at 7%(years 5 and 6), and after that (starting in year 7) it will reach a forever growth rate of 3.5%. Calculate enterprise and equity value if (a) the company has $50 million in debt, $10 million in cash and a cost of capital of 13%. And (b) the company has $75 million in debt, $10 million in cash and a cost of capital of 11.5%.

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