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A company is projected to generate free cash flows of $ 1 6 9 million next year and $ 1 9 7 million at the
A company is projected to generate free cash flows of $ million next year and $ million at the end of year after which it is projected grow at a steady rate in perpetuity. The company's cost of capital is It has $ million worth of debt and $ million of cash. There are million shares outstanding. If the terminal EVFCFF exit multiple at the end of year is what's your estimate of the company's share value? Round to one decimal place.
HINT: Compute TV using the exit multiple approach as FCFF times comparables' multiple. The rest is the same as the DCF method: Discount FCFF FCFF and TV back to the present using WACC, then walk the bridge to the share value.
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