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ABC Corporation is a fast - growing supplier of office products. The company just invested $ 5 million of new machine to keep up with

ABC Corporation is a fast-growing supplier of office products. The company just invested $5 million of new machine to keep up with the market demand. The CFO, Robert Myers, estimates the company will generate free cash flows (FCFs) for the next four years as following:
Year
1
2
3
4
FCF
-$2,000,000
$3,000,000
$3,500,000
$4,200,000
If the cost of capital of the firm (WACC) is 10%, what is the firms value today?
Suppose ABC Corporation has $500,000 of debt and 100,000 shares outstanding. What is the firms stock price?

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