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The Bell Weather Co. is a new firm in a rapidly growing industry. The companys FCFF this year is $2 million. The company is planning
The Bell Weather Co. is a new firm in a rapidly growing industry. The companys FCFF this year is $2 million. The company is planning on increasing its FCFF by 10 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year What is the current enterprise value if the cost of capital is 7.5%, and the cost of equity is 12%. Assuming the company has cash of $10 million, debt of $30 million, what is the equity value? What is the share price if there are 8 million of shares outstanding?
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