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video 3 The following table shows projected tree cash flows for the next three years for Care4uMed Corp., a company producing portable oxygen machines. After
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The following table shows projected tree cash flows for the next three years for Care4uMed Corp., a company producing portable oxygen machines. After the three year period, Care4uMed is expected to grow at a constant rate of 10% and its WACC is 15%. Care4UMed has $25 million of debkend $180 million shares of stock outstanding. According to the videe, what is the formula for Caresumed's horizon value? mv4=rrmr4HV3=FF3(1+e)3mv4=mc1pciuv2=seccos2 Care4uMeds hortzon value is million. According to the video, what is the formula for the firm's value today? V0=(1+WC1C1FC1+(1+WACC2FCF2+(1+WACC2FCF1+(1+WACC2WV3V0=(1+WAC)2FCF1+(1+WACC)2FCF2+(1+WACC)2FCF3+(1+WACC)2HV3V0=(1+WCC)4IW3V0=(1+WCC1)2FF1+(1+WACC2FC2+(1+WACC2FCF1+HV3 Care4uMed's value today is million. According to the video, the value of equity is found as Care4uMed's equity is million. According to the video, the price per share is found as Care4uMed's the price per share is Step by Step Solution
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