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ABC company's current FCF is $2,000,000, it will grown at 20% for the first 4 years and back to a steady growth rate 7% after 4 years. The WACC is 10%, outstanding shares is 4,000,000. Please use FCF model to estimate the value of their stock. Show you steps and calculations in Excel. Assume all FCFs happen at the end period.

Current FCF

2,000,000

Anticipated growth rate, years 1-4

20%

WACC

10%

Long-term growth rate, after year 4

7%

Number of shares outstanding

4,000,000

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