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A company is projected to generate revenues of $250 million next year. Analysts expect revenues to grow at a 5.8% annual rate for the following
A company is projected to generate revenues of $250 million next year. Analysts expect revenues to grow at a 5.8% annual rate for the following two years (until the end of year 3) and then at a stable rate of 4.8% in perpetuity. If the company is expected to have a gross margin of 75%, operating margin of 38%, net margin of 25%, tax rate of 15%, and reinvestment rate of 30%, what is its expected free cash flows in four years from today?
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