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Question 4 (20 points): You are trying to estimate a value for Environ. The firm's free cash flows to equity are assumed to grow at

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Question 4 (20 points): You are trying to estimate a value for Environ. The firm's free cash flows to equity are assumed to grow at a rate equal to the estimate you obtained in the base-case scenario for each of the years 2022 to 2026, followed by a perpetual growth rate that is equal to the risk-free rate. The firm is also expected to have a return on equity of 10% and a cost of capital of 6% in perpetuity. Carry out a DCF valuation for Environ. Provide your investment recommendation compared to the market capitalization provided in the last page. Assume a margin of error of 10% in making your investment recommendation

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