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Can ypu explain the steps to answer this problem? For my company: , FCF (Free Cash Flow) is $50m in Year 1, increasing by 5%
Can ypu explain the steps to answer this problem?
For my company: , FCF (Free Cash Flow) is $50m in Year 1, increasing by 5% for 5 years, then 4% thereafter.
Earnings After Tax in Year 5 is $105m. PE Mulitiples for comparable companies is 9.
Required return is 12%.
There are #10m shares issued and outstanding
What is firm value?
What is the stock value?
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