Estimate the current value of vest computing stock

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Reference no: EM131617355

You are an equity analyst following the technology industry. Vest Computing stock is valued by its free cash flow, which is expected to be $4.00 per share in the current year. Over the next 5 years, Vest cash flow is projected to grow by 15% annually, and after this period it is expected to grow by 7% annually. If the rate of return demanded by Vest investors is 13%, estimate the current value of Vest Computing stock.

Reference no: EM131617355

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