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Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows(FCFs)...

Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows(FCFs) during the next 3 years, after which FCF is expected to grow at a constant 8% rate. Dozier's weighted average cost of capital is WACC = 17%.

Year Free Cash Flow ($ Millions)
1 -$20
2 $30
3 $40

a.) What is Dozier's horizon value?

b.) What is the current value of operations for Dozier?

c.) Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share?

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