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Consider the following financial information about ABC Limited: High Growth Stage (2 years) Stable growth Stage Growth rate of FCFF = 15% Growth rate of
Consider the following financial information about ABC Limited:
High Growth Stage (2 years) | Stable growth Stage |
Growth rate of FCFF = 15% | Growth rate of FCFF = 3% |
EBIT (1 - T) = $200 | |
WACC = 10% | |
Capital Expenditures = $100 | |
Depreciation = $100 | |
Increase in NCWC = $120 | |
Market value of debt = $2,500 | |
Cash = $1,450 | |
Number of shares = 13 |
Using the information above in a two-stage discounted cash flow (DCF) model, calculate the target price of ABC Limited (in $ per share).
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