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MSFT projected to have EBIT of 1 0 0 next yr , net investment of 5 5 . FCF grow 5 % for 2 years

MSFT projected to have EBIT of

100

next yr

,

net investment of

55 .

FCF grow

5 %

for

2

years after, and then continually grow at rate of

3 % .

Tax rate is

30 %,

cost of cap is

12 % .

What is value of firm

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