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You have just graduated and are working at a small company. The CEO is thinking about going public and has asked you, the only member

You have just graduated and are working at a small company. The CEO is thinking about going public and has asked you, the only member of the team with a business degree, to estimate the value of the equity by Monday. Thankfully, you remember that you learned how to do this in your FIN310 class! You have come up with the following inputs to get back to the CEO:
2025 free cash flow: $530,000
2026 free cash flow: $570,000
2027 free cash flow: $620,000
Annual FCF growth after 2027: 3%
Company WACC (discount rate): 8%
Total debt: $1.1MM
number of shares: 400,000
Please develop an equity valuation for the business using the free cash flow valuation method.

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