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SOLVE USING EXCEL. You have calculated a company's free cash flow ( FCF ) to be $ 4 0 0 , 0 0 0 .

SOLVE USING EXCEL. You have calculated a company's free cash flow (FCF) to be $400,000. Now, you need to use the discounted cash flow (DCF) model to determine the company's stock price. Assume that the FCF will grow by 5% annually for the next 5 years and then stabilize at a 2% growth rate thereafter. The company's weighted average cost of capital (WACC) is 10%, and it currently has 1,000,000 shares outstanding. Using the simplified balance sheet below, find the cash and debt, and calculate the company's stock price.
\table[[Item,Amount ($],[Assets,],[Cash,200,000],[Accounts Receivable,300,000],[Inventory,150,000],[Equipment,1,000,000
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