You have landed your dream summer internship, and your boss has asked you to value...
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Finance
You have landed your dream summer internship, and your boss has asked you to value a company. You estimate that the company will generate the following future cash flows: $220 in one year, $170 in two years, $420 in three years, $360 in four years and $730 in five years. In addition, you estimate that after year five the cash flows will grow at 4.2% per year forever. Securities of similar risk provide an expected return of 18%. What is the value of this company today
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