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You are using DCF to value a company has 51.5M shares of common stock and $192.3M of debt face value. They have excess cash and
You are using DCF to value a company has 51.5M shares of common stock and $192.3M of debt face value. They have excess cash and marketable securities of $14.3M. The tax rate is 21% and the weighted average cost of capital is 10.2%. You have estimated free cash flows of $50M in year 1,$65M in year 2 , and $75M in year 3 . a. If the expected annual growth in free cash flow beyond year 3 is 1.8%, what is the enterprise value for this target? b. What is the equity price per share for this target
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