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Question 15 14 points Save Answer (Lecture 8 - Stock Valuation - Discounted Free Cash Flow model) Assume you have a company that has the
Question 15 14 points Save Answer (Lecture 8 - Stock Valuation - Discounted Free Cash Flow model) Assume you have a company that has the following financials for fiscal year 2020: $975 million in cash $636 million in book value of debl $456 million in market value of debt The company is expected to generate a free cash flow of $200 million in 2021. The growth rates of the free cash flows will be 4% in 2022 (e. g., Year 2022 FCF = (1+4%) "Year 2021 FCF), 2% in 2023 (e.g., Year 2023 FCF = (1+2%) *Year 2022 FCF), and -3% (yes, negative growth rate) per year after 2023. If the firm's weighted average cost of capital is 10% and the firm has 200 million shares outstanding in 2020, then after its 2020 annual report is released to the public, the firm's equity value per share is $_ Instruction: Type ONLY your numerical answer in the unit of dollars, NO $ sign needed, No comma sign. Round to the nearest two decimal places. E g., if your answer is $18.768 then input 18.78
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