Ergo Unlimiteds current years free cash flow is $7 million. It is projected to grow...

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Finance

Ergo Unlimiteds current years free cash flow is $7 million. It is projected to grow at 20% per year for the next five years. It is expected to grow at a more modest 6% beyond the fifth year. The firm estimates that its cost of capital is 11% during the next five years and then will drop to 9% beyond the fifth year as the business matures. Estimate the firms current market value.

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