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Assumptions: ABC company has 20 million shares outstanding Estimates of FCFF (in millions) at the end of the next four years is as follows: Y1

image text in transcribed Assumptions: ABC company has 20 million shares outstanding Estimates of FCFF (in millions) at the end of the next four years is as follows: Y1 \$24; Y2 \$27; Y3 \$32; Y4 \$36 After year 4 it is estimated FCFF will grow at a constant rate of 6 percent per year You have determined the appropriate risk-adjusted discount rate is 10.5 percent The company has 20 million in outstanding debt You have also gathered data for the following comparable transactions

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