Answer on Finance Question 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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