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Your junior analyst has prepared a cash flow forecast for Apple Inc. She forecasts free cash flow in Year 4 of $ 4 0 billion.

Your junior analyst has prepared a cash flow forecast for Apple Inc. She forecasts free cash flow in Year 4 of $40 billion. After Year 4, the free cash flow will grow at a constant rate of 2.5% in perpetuity. What is the value of Apples Equity at the beginning of Year 4? The companys cost of capital is 9%. Additional information provided in the balance sheet

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