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A company has the following data: Net income: $200,000 Depreciation and amortization: $50,000 Increase in accounts receivable: $10,000 Increase in accounts payable: $5,000 Capital expenditures:

A company has the following data:

  • Net income: $200,000
  • Depreciation and amortization: $50,000
  • Increase in accounts receivable: $10,000
  • Increase in accounts payable: $5,000
  • Capital expenditures: $30,000
  • Dividends paid: $40,000
  • Tax rate: 30%

Calculate the company's free cash flow and use it to determine the company's value using the discounted cash flow (DCF) method. Assume a discount rate of 10%.

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