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You estimated that company ABC will grow its FCFF at a rate of 10% (this is considered to be a high growth company), while the

You estimated that company ABC will grow its FCFF at a rate of 10% (this is considered to be a high growth company), while the economy is expected to grow at 2% forever. Briefly explain whether you would choose a 2-stage or a 3-stage model to value this company. Why? Also, what factors would determine your choice of the high growth period? Explain.

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