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You are working on the valuation for an upcoming IPO. The company that wants to sell its stock expects the following future free cash flows (FCF, in millions of dollars): -7 in year 1, 5 in year 2, 19 in year 3, and cash flows are expected to grow steadily at 5.4% after year 3. The discount rate for this company is 8.2%, and it plans to sell 10 million shares. What should be the price per share?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91586276

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