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Cedar Rapids Intl has current and expected FCFFs of $15mn, $18mn, $22mn, and $26mn over...

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Finance

Cedar Rapids Intl has current and expected FCFFs of $15mn, $18mn, $22mn, and $26mn over the Year 0-3. Then from Year 4 on, the FCFF is expected to stabilize and grow at 2.5% annually. The company has debt of $100mn and 30mn shares outstanding. (Hint: This is a two-stage DCF problem, so you should first estimate the terminal value as of Year 3.) If the companys WACC is 8%, compute the value of the business today. What is the value of each share? Enter the numeric portion of your answer going into two decimal places without the dollar sign.

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