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P6.5 Estimating a Perpetual Growth Rate from Comparable Companies: Straight Shooter Inc.'s CFO is using the DCF valuation model to value his company. The company's

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P6.5 Estimating a Perpetual Growth Rate from Comparable Companies: Straight Shooter Inc.'s CFO is using the DCF valuation model to value his company. The company's CFO collected information about six com- parable companies as shown in Exhibit P6.1. Estimate the perpetual growth rate for each of the comparable companies based on this information EXHIBIT P6.1 Straight Shooter, Inc.'s Comparable Company Information Unlevered Free Cash Flow Forecasts WACC Year 1 Year 2 Year 3 Firm Value 10.539 (s in millions) Comparable Company 1 Comparable Company 2 Comparable Company 3 Comparable Company 4 Comparable Company 5 10.2096 10.1096 $2,000.0 $ 340.0 $ 200,0 $1,200.0 $260.0 $2,400.0 $ 350.0 $ 210.0 $1,400.0 $ 250.0 $2,600.0 $360.0 $ 240.0 $1,500.0 $ 250.0 $30,000.C $ 4.200 $ 2,800.0 $20,000.0 $ 2.870.C 9.8096 9.5096

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