Non-constant growth model challenge problem at what


(Non-constant growth model, challenge problem) Nevada inc.'s stock price is $30 per share. Firm has 2 million shares outstanding. Market value of debt is $40 million. Firm's most recent free cash flow is $4 million and expected to grow at 30% for the next three years, then grow at a constant rate and WACC =12%. At what constant rate is free cash flows expected to grow after year 37 (Assume markets are in equilibrium)

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Financial Management: Non-constant growth model challenge problem at what
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