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Gamma Commodities Inc. (GCI) is expected to generate the below free cash flows over the next four years, after which they are expected to grow
Gamma Commodities Inc. (GCI) is expected to generate the below free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 11% and GCI has cash of $85 million, debt of $65 million, and 30 million shares outstanding, what is the intrinsic value of GCIs stock?
year | 0 | 1 | 2 | 3 | 4 |
FCFF | 12 | 18 | 22 | 26 |
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