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An investor is planning to value company A . After careful estimation of cash flows, he projects the following cash flows for the firm in

An investor is planning to value company A. After careful estimation of cash flows, he projects the following cash flows for the firm in the following 5 years as.
Year 1: FCFF_1= $50
Year 2: FCFF_2= $60
Year 3: FCFF_3= $70
Year 4: FCFF_4= $80
Year 5: FCFF_5= $90
The risk free rate of return is 3%, equity risk premium (market premium) is 6%. Beta is 1.2. For the terminal value, he assumes a perpetual growth rate of 3%. The corporate tax rate is 25%, and equity and debt is in equal proportion in the firm and the cost of debt borrowing is 10%.
Estimate the value of the firm.

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