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The ABC Corporation had FCFF of $200 million in the most recent year. ABCs weighted average cost of capital (WACC) is 10%. If ABCs FCFF
The ABC Corporation had FCFF of $200 million in the most recent year. ABCs weighted average cost of capital (WACC) is 10%. If ABCs FCFF is expected to grow at 12% for each of the next two years and then settle down to a constant growth rate of 4% per year from year 3 onward, what is ABCs value today?
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