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can you solve this problems usisng equations ? % of y e f f 10. You are trying to value CVS Corporation, a leading chain

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% of y e f f 10. You are trying to value CVS Corporation, a leading chain of drugstores. You have estimated the free cash flows to equity for the firm this year to be $300 mil- lion in the current year. You anticipate that these cash flows will grow 15% a year for the next five years and 5% thereafter (forever). The firm has a cost of equity of 11% and 392 million shares outstanding. a. Estimate the total value of equity in CVS. b. Estimate the value of equity per share in CVS. c. If the stock is trading at $36 per share, assuming that the estimated growth rate of 15% is correct, how long would growth have to continue for the price to be justified. (You can assume that the sta- ble growth rate remains 5%.)

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