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There are many ways to value an asset. Valuation is a science, but it is also an art. Each method may not provide identical answers,

There are many ways to value an asset. Valuation is a science, but it is also an art. Each method may not provide identical answers, and they can sometimes be far off.A DCF model that incorporates using multiples and free cash flow is shown on slides 38-42 for Tesla. Using a similar approach to slides 38-40, value a stock with the following information.AssumeFCFE per share in time 0= $1.00FCFE per share in time 1= $1.10FCFE per share in time 2= $1.20FCFE per share in time 3= $1.30FCFE per share in time 4= $1.40FCFE per share in time 5= $1.50FCFE per share in time 6= $1.60FCFE per share in time 7= $1.70Assume change in capital (net fixed assets and net operating working capital) in time 7 are $0.50 per share.Assume the P/E in time 7 is 16Assume the cost of equity (the discount rate or r) is 10%.What is this stock worth?

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