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The projected free cash flows for XYZ corporation from 2023 to 2025 are shown below. After 2025, the free cash flows are projected to grow
The projected free cash flows for XYZ corporation from 2023 to 2025 are shown below. After 2025, the free cash flows are projected to grow at a constant rate of 2%. Please answer the questions that follow Viminal (0.08 -0.02) (9180) B Vlemine (0.08 -0.027 (9000) (1 +0.02) Veemina 10.08-0.02) (5,500) OD 1 Veeminen 0.08 -0.02) (6.500) Assume that you want to estimate the company's enterprise value by using its actual stock price. If the company's stock price is currently trading at $60 per share and the company has $20,000 in cash, $40,000 in debt and 1000 shares outstanding, what would be the company's enterprise value? O A. $80,000 OB. $40,000 OC. $120,000 OD. $20,000 If the discounted cash flow model predicts a price for this company that is about $60 (similar to the current market price), it follows that: O A. The company's projected growth rate is lower compared to what the market anticipates O B. The company's projected growth rate is about the same as what the market anticipates O C. Not enough information to make an inference about the projected growth rate OD. The company's projected growth rate is higher compared to what the market anticipates
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