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SM Town Inc. estimates their future free cash flows as followed: Year 1: $25,000; Year 2:...

SM Town Inc. estimates their future free cash flows as followed: Year 1: $25,000; Year 2: $31,600; Year 3: $34,000. They expect a 5% growth rate beyond year 3 and the required rate of return is 13%. 18) What is their terminal value in Year 3 (V3)? Question 18 options: $446,250 $378,990 $425,000 $414,750

What is a fair stock price per share of SM Town if they have $50,000 in debt and 3,500 shares outstanding?

Question 19 options:

$94.20

$87.96

$80.84

$89.99
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