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Lohn Corporation is expected to generate the following free cash flows over the next four years: $ 1 3 0 , $ 1 5 0

Lohn Corporation is expected to generate the following free cash flows over
the next four years: $130, $150, $200, and $255. Afterward, the company
expects to maintain a constant 5 percent growth rate in free cash flows
forever. If the required return on the stock is 7.5%, what is the intrinsic value
of the firm?
If the number of shares is 200,000, what would be the fair value of stock price? All
cash flows are in 000s.

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