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Question #1 You are about to launch a new fitness video straming company called FitFlix. You expect to generate the following FCF by year: Today
Question #1 You are about to launch a new fitness video straming company called FitFlix. You expect to generate the following FCF by year: Today = $0, Year 1 = $10m, Year 2 = $18m, Year 3 = $40m After year 3, you expect constant growth at 5%. The required return from your investors (WACC) is 11%. (a) What is the market value of the company's operations? (b) If there are $3m in non-operating assets, $50m of debt, and 25m shares of stock, what is estimated price per share
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