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Assume FCFF for the next 3 years will be 1M, 1.5M and 2M respectively. After that they will grow at 8%. The firm WACC is
| Assume FCFF for the next 3 years will be 1M, 1.5M and 2M respectively. After that they will grow at 8%. The firm WACC is 13%. The firm has 500,000 shares outstanding and 5M in debt. What is the price per share of this firm? | ||||
I have the below:
| Year | FCFF | Term Val | Discount | PV@WACC |
| 1 | 1,000,000 | 1.13 | $884,955.75 | |
| 2 | 1,500,000 | 1.277 | $1,174,720.03 | |
| 3 | 2,000,000 | 43200000 | 2.0820 | ?????? |
| 4+ | 2,160,000 |
How do I solve for the value of the firm there...... my answer guide says it is 31,325,867 but I cannot figure out the formula Please show formulas if in excel
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Professionals Handbook Of Financial Risk Management
Authors: Lev Borodovsky, Marc Lore
1st Edition
0750641118, 978-0750641111
