Answer to Question #20188 in Finance for Bob Sanders
Then using formula for permanent growth we get value of all in flows which are expected to appear after FCF3 at moment of time t=3:
PV3=FCF3/(0.15-0.05)=250. Than we discount it to the current time PV=PV3/(1+0.15)^3=164.4.
Total value of all shares: TV=54.6+164.4-40=179
PPS=179/10=17.9 $ per share.
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