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.
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Current FCF
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2,000,000
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Anticipated growth rate, years 1-4
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20%
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WACC
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10%
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Long-term growth rate, after year 4
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7%
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Number of shares outstanding
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4,000,000
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