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You are an equity analyst covering Fincher Manufacturing. You project the firm will have operating cash flows (OCF) of $20 million and interest costs of $5 million next year.

Each of these values is expected to grow at 10% in year 2, then 5% in year 3, then be constant (0% growth) forever after that.

The firm has 29 million shares outstanding. With a discount rate of 12%, what is your target share price for Fincher?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92845065

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