Question
ABC Corporation has a Free Cash-Flow (FCF) of $1.5 million in 2020. FCF is estimated to grow at the rate of 4% for the next
ABC Corporation has a Free Cash-Flow (FCF) of $1.5 million in 2020. FCF is estimated to grow at the rate of 4% for the next 5 years (till 2025) and at 2% thereafter (beyond 2025). The Cost of Capital is 8%. ABC Corporation has Net Debt of $10 million in 2020. Cash and Cash Equivalents total $5 million in 2020. The value of Equity in 2020 is:
| A. | $22.82 mil | |
| B. | $17.82 mil | |
| C. | $12.82 mil | |
| D. | $27.82 mil |
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Stock Market Investing Playbook
Authors: David Reese
1st Edition
1951595270, 978-1951595272
