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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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