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Estimating a Perpetual Growth Rate from Comparable Companies: Straight Shooter Inc.'s CFO is using the DCF valuation model to value his company. The company's CFO

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Estimating a Perpetual Growth Rate from Comparable Companies: Straight Shooter Inc.'s CFO is using the DCF valuation model to value his company. The company's CFO collected information about six comparable companies as shown in Exhibit P6.1. Estimate the perpetual growth rate for each of the comparable companies based on this information.

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Exhibit P6.1 (Dollars in millions) Comparable Company 1 Comparable Company 2 Comparable Company 3 Comparable Company 4 Comparable Company 5 WAC C 10.50% 10.20% 10.10% 9.80% 9.50% Expected Unlevered Free Cash Flow Year 1 $2,000.0 $340.0 $200.0 $1,200.0 $260.0 Year 2 $2,400.0 $350.0 $210.0 $1,400.0 $250.0 Year 3 $2,600.0 $360.0 $240.0 $15000 $250.0 Firm Value $303000 $4,200.0 $2,800.0 $20,000.0 $2,870.0

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