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Lifecycle Motorcycle Company is expected to have a FCFE in year 1 of $200K, a FCFE in year 2 of $300K, and a FCFE in
Lifecycle Motorcycle Company is expected to have a FCFE in year 1 of $200K, a FCFE in year 2 of $300K, and a FCFE in year 3 of $400K. After year 3, the FCFE is expected to grow at the rate of 7% per year. There are 100,000 shares currently outstanding. An appropriate required return for the stock is 12%. Using the DCF model, the stock should be worth today. $85.60 O $63.80 O $65.13 O $67.95
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