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You have FCF for the next five years, a long-term growth rate for the cash flows after Year 5, some cash that the firm has
You have FCF for the next five years, a long-term growth rate for the cash flows after Year 5, some cash that the firm has in the bank today, their short and long-term debt, the number of shares outstanding, accounts receivable, and net income. Find the per share equity value given this information. Perform your work in the box below. 2) Once you value the firm, make a nicely formatted graph showing how the equity price per share changes with the long-term growth in free cash flows. Use a range of 3% to 5%. 1 Year Estimated Revenues Estimated Net Income Estimated free cash flow 2 3 4 5 $ 1,200,000 $1,300,000 $1,400,000 $1,500,000 $ 1,750,000 $ 356,000 $ 450,000 $ 450,000 $ 600,000 $ 650,000 $ 200,000 $ 250,000 $ 255,000 $ 280,000 $ 295,000 WACC Long-term growth rate of free cash flow Cash and Marketable Securities Short-term debt Long-term debt Accounts Receivable Net Income Accounts Payable Number of shares 14% 4% 170,000 55,000 65,000 15,000 235,000 100,000 120,000
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