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Berzerk Motors is expected to have a free cash flow of $750000 next year. Cash flows are expected to grow at 18 percent per year
Berzerk Motors is expected to have a free cash flow of $750000 next year. Cash flows are expected to grow at 18 percent per year for the next four years(years 2-5). After year 5, the free cash flow is projected to grow at 3.5 percent indefinitely. The firm currently has $3 million in debt, 500000 shares outstanding, and a WACC of 10.24%.
What is the value of Berzerk Motors?
What is the price per share of the companys stock?
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