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year 0 1 2 3 4 FCF millions -40 19 19 19 19 The cash flow for the firms project is listed in the table
year | 0 | 1 | 2 | 3 | 4 |
FCF millions | -40 | 19 | 19 | 19 | 19 |
The cash flow for the firms project is listed in the table above. After year 4, the FCF is expected to grow at a constant rate of 3%. The firms discount rate is 8%. If cash is $5 million, the market value of the firms debt is $15 million, and the number of shares outstanding is 6 million, estimate the share price using the Discounted free cash flow mode l
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