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He estimated that the compamy's FCF would grow at 30% for the next 3 years, 15% for the following 3 years, and then at 5%

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He estimated that the compamy's FCF would grow at 30% for the next 3 years, 15% for the following 3 years, and then at 5% thereafter. He estimated their WACC at 8%. He also came up with estimates for possible future dividend growth rates of 15% for the next 2 years, 10% the following 2 years, and then 4% thereafter. He estimated the stocks beta to be 1.2. The current market return is 10% and the risk free rate is 3%. The stock is currently selling for \$24. You are tasked with estimating the price of the stock using both the Corporate Valuation Model and the Dividend Growth Model and making a recommendation on whether the company is under, over, or fairly priced. He estimated that the compamy's FCF would grow at 30% for the next 3 years, 15% for the following 3 years, and then at 5% thereafter. He estimated their WACC at 8%. He also came up with estimates for possible future dividend growth rates of 15% for the next 2 years, 10% the following 2 years, and then 4% thereafter. He estimated the stocks beta to be 1.2. The current market return is 10% and the risk free rate is 3%. The stock is currently selling for \$24. You are tasked with estimating the price of the stock using both the Corporate Valuation Model and the Dividend Growth Model and making a recommendation on whether the company is under, over, or fairly priced

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