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You are a MNC looking at buying a company in your country of choice. You have determined that the free cash flow is $150 Million
You are a MNC looking at buying a company in your country of choice. You have determined that the free cash flow is $150 Million growing at 9% each year. How much would you pay for this company?
You will have to use the Capital Asset Pricing Model (CAPM), determine the Weighted Average Cost of Capital (WACC) and then discount the free cash flows that you will determine after applying the growth.
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