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A financial analyst following Fast Start Inc., a new high-growth company, estimates that the current risk-free...

A financial analyst following Fast Start Inc., a new high-growth company, estimates that the current risk-free rate is 6.25%, the market risk premium is 5%, and that Fast Start’s beta is 1.75.  The current FCFF (FCFF0) is $1.  The company’s FCFF is expected to grow at a rate of 25% this year, 20% next year, and 15% the following year.  After three years the FCFF is expected to grow at a constant rate of 7% forever. The company has no debt and is 100% equity.  What is the current stock price estimated using DCF model?

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