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At the current time (time 0) the firm has FCFE of $100 million. This FCFE is expected to grow 10% year for 3 years and
At the current time (time 0) the firm has FCFE of $100 million. This FCFE is expected to grow 10% year for 3 years and then grow at a constant 1% in perpetuity. Using a cost of equity of 11%, compute the value of stock assuming 100 million shares outstanding. Need step by step details to come up with solution.
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