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The following are projected free cash flows to equity for a company that is expected to be in high growth for the next 3 years.

The following are projected free cash flows to equity for a company that is
expected to be in high growth for the next 3 years. The firm's beta is also expected
to change over the 3-year period:
Assume that after year 3, the beta will stay at 1.00, and that the growth rate will
remain 6% forever (the Beta will stay at 1 forever as well). The risk-free rate is 5%,
and you can assume a risk premium of 5.5%.
Estimate the value per share today. (Hint: You have multiple Betas, so you will have
to compute a Required Return on Equity for each year. In addition, with a different
Required Return, you will have to discount each cashflow by the appropriate
Required Return for each year!)
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