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What was the annual growth rate of the target firm s annual free cash flow from 2 0 2 0 - 2 0 2 2
What was the annual growth rate of the target firms annual free cash flow from Enter your answer as a decimal with four decimal places.INSTRUCTIONS
As the newly appointed CFO of an established firm, your CEO brings you a proposal to acquire a rising competitor. The acquisition would make your firm the largest player in the market. To make a competitive offer, the CEO has asked you to come up with a value for the target firm. As the firm does not pay dividends, you elect to use the free cash flow FCF valuation model. Currently, the target firm has a single outstanding debt issue quoted at $ per bond with bonds outstanding. The target firm also has shares of preferred stock outstanding with a market value of $ share. You obtain the following information from the target firm's most recent three years of financial statements:
tableEBIT$$$
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