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Question 7 A company has been growing at a rate of 32% per year in recent years. This same supernormal growth rate is expected to
Question 7 A company has been growing at a rate of 32% per year in recent years. This same supernormal growth rate is expected to last for another 4 years, during which it will not have any free cash flows(FCF). It will start to have FCF of $5 million in 5th year. After this, earnings and FCF are expected to grow at a 4 percent annual rate indefinitely. Its weighted average cost of capital is 9 percent. What should be the current value of this company in million? 60.21 70.84 O 77.92 63.75 2.5 pts 67.29
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