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Present value of a firm using discounted growth model. A firm has Free Cash Flow in year 1 of $2.5 million and year 2 or
Present value of a firm using discounted growth model.
- A firm has Free Cash Flow in year 1 of $2.5 million and year 2 or $2.6 million
- Assume an 8% interim Free Cash Flow growth rate for each of the years 3 5
- Cost of Capital is 12%
- Assume a 3% growth rate for Continuing Value
Find the value of the firm using this given information.
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