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Ignore the answer shown ,, and reanswer this question 4) (5 pts) Assume Company E has $350 million in Debt and 70 million shares of

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4) (5 pts) Assume Company E has $350 million in Debt and 70 million shares of common stock outstanding. The Company is expected to generate FCF of $60 million in year 1. The FCF in year 2 is expected to be $65 million. After year 2, the company's FCF is expected to grow at a constant rate of 4%. Assume the WACC is 7.5%. What is your estimate of the horizon value of the assets at the end of year 2? a. FCF 350 5as) Market Value of the assets (Horizon Value) at the end of year 2 13142mlio b. What is your estimate of the Market Value of the assets today (year 0)? ou 60 65 1143.39 MV of Assets today CF, 60 nPV cPT 1705.39 CE 1996 c. What is your estimation of the price per share today? 51943 350 i36 20 /ml Price per share today $

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