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Use the corporate valuation model to find the intrinsic value of a firm with a long-run growth in FCF of 5.3% and a WACC of
Use the corporate valuation model to find the intrinsic value of a firm with a long-run growth in FCF of 5.3% and a WACC of 11.25%. The firm has $78 million in debt and preferred stock and has 2.44 million shares of common stock. The FCF for the first 4 years are (in millions of dollars): $7,$5.75,$13.8,$18 A. $48.48 B. $58.86 C. $61.51 D. $86.81 QUESTION 24 Use the corporate valuation model to find the intrinsic value of a firm with a long-run growth in FCF of 5.9% and a WACC of 14.5%. The firm has $5 million in debt and preferred stock and has 1.5 million shares of common stock. The FCF for the first 3 years are (in millions of dollars): $2,$11,$17. A. $43.52 B. $64.72 C. $75.62 D. $101.61
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