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Given the following information, calculate the estimated stock price: FCF year 1: -10m, FCF year 2: 40m FCF year 3: 60m FCF year 4: 80m

Given the following information, calculate the estimated stock price:

FCF year 1: -10m,

FCF year 2: 40m

FCF year 3: 60m

FCF year 4: 80m

After year 4, growth rate of FCF becomes constant at 5%.

The firm has 20m shares with a WACC of 8%. Short term investments = 50m. There is no preferred stock. long term debt is 30m.

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