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Questions 1 6 to 2 0 are based on the following information A firm you are analyzing expects to have FCF of 3 , 0
Questions to are based on the following information
A firm you are analyzing expects to have FCF of next year. After that you expect that the nondepreciation FCF ie the FCF minus the depreciation tax shield will grow at a rate of for years. Growth will then stabilize to per year, forever.
The depreciation tax shield is based on fixed assets already purchased, so it is known with certainty. Assume that the $ depreciation is charged perpetually and that the amount of depreciation is unchanged from year to year.
Assume that all cash flows occur throughout the year.
Tax rate is Required return is while riskfree rate is The firm has $ in debts and shares outstanding. Round all answers to the nearest integer.
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What is the DTS in year
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What is NDCF in year
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What is PVDTS
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What is PVNDCF
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What is the share price?
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