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Yr FCF 1 6M 2 10M A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will

Yr FCF
1 6M
2 10M

A firm expects the free cash flows listed above. After year 2, the firm expects free cash flows will continue to grow indefinitely at the industry average of 5%. The firm estimates its cost of capital to be 8%. If the firm has debt of $40 million and cash of $20 million, what is its enterprise value? Assume 10 million shares outstanding.

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