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Q2. The Free Cash Flow to Equity per share for next year is computed as $2. We have the following information about annual growth rate
Q2. The Free Cash Flow to Equity per share for next year is computed as $2. We have the following information about annual growth rate for the next five years: years 1 to 5 as 20%, 18%, 16%, 14% and 12% respectively. After year 5, the normal growth rate is 5% each year. The discount rate is 10%. Based on this data, the price of this stock as of the year 5 should be $.............. and the price of this stock as of today should be $ ..
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