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FCF0

g1
g2
g3
g4
iy
time
Ffcfe

pv

1150.97 sum

100
10%
10%
10%
1% perptuity
11%
0

1
2
110
121
price 3 =134.431/(11%-1%)

110/(1+.11)^1

89.28

121/(1+.11)^2

88.47

3
133.1
1344.31
(133.1+1344.31)/(1+0.11)^3

973.22

At the current time (time 0) the firm has FCFE of $100 million.
10% year for 3 years and then grow at a constant 1% in perpe
11%, compute the value of stock assuming 100 million shares
details to come up with solution.
4
134.431

1+1344.31)/(1+0.11)^3

FCFE of $100 million. This FCFE is expected to grow


constant 1% in perpetuity. Using a cost of equity of
ng 100 million shares outstanding. Need step by step

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