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SHOW IN EXCEL The following is an estimate of free cash flow for company Zeta over the next 3 years : 1 2 Free Cash

image text in transcribedSHOW IN EXCEL

The following is an estimate of free cash flow for company Zeta over the next 3 years : 1 2 Free Cash Flow -10 19 30 3 After year 3, FCF is expected to grow at a 4% constant rate forever. Dozier's WACC is 9.5% Also, assume the company has $20 million in marketable securities, $80 million in outstanding debt and $5 million shares of stock outstanding. a. What is the horizon value (as of time 3)? b. What is the current value of Dozier's operations? c. What is the intrinsic price per share

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