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Calculate the intrinsic value of lfm stock

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Reference no: EM133069819

LFM Corporation has an estimated free cash ?ow to equity {FCFE} of $2.50 per share in the current year. Moreover, its FCFE is expected to grow at a constant rate of 2% per year. Assuming an institutional investor has a required rate of return of 6.5%, calculate the intrinsic value of LFM stock.

Reference no: EM133069819

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