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A firm has 100,000 shares outstanding, a WACC of 10%, and $500,000 in debt. It also expects to have a 5% expected growth in FCF
A firm has 100,000 shares outstanding, a WACC of 10%, and $500,000 in debt. It also expects to have a 5% expected growth in FCF after the second year. It has the following expected cash flow for the next 2 years:
FCF1 = $20,000
FCF2 = $50,000
What is the estimated price? 4 pts
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