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A DCF model that incorporates using multiples and free cash flow is shown on slides 3 8 through 4 2 for Tesla. Using a similar

A DCF model that incorporates using multiples and free cash flow is shown on slides 38 through 42 for Tesla. Using a similar approach to slides 38 through 40 value of stock with the following information:
Assume:
FCFE per share in time 0= $1.00FCFE per share in time 1= $1.10FCFE per share in time 2= $1.20FCFE per share in time 3= $1.30FCFE per share in time 4= $1.40FCFE per share in time 5= $1.50FCFE per share in time 6= $1.60FCFE per share in time 7= $1.70
- Assume change in capital (fixed assets and net operating working capital) in time 7 are $0.50 per share
- Assume the P/E in time 7 is 15
- Assume the cost of equity (the discount rate or r) is 10%
What is the stock worth?

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