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Fcfest Analyse FI 2
Fcfest Analyse FI 2
This model is designed to value the equity in a stable firm on the basis of
free cashflows to equity, especially when they are
different from dividends paid.
1. The firm is in steady state and will grow at a stable rate forever.
2. The firm does not pay out what it can afford to in dividends, i.e., Dividends ≠ FCFE.
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FCFE Stable Model
Expected Growth Rate = 6% (in percent) The expected growth rate for a stable firm
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FCFE Stable Model
Warnings:
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FCFE Stable Model
10.00% $98.28
9.00% $73.34
8.00% $58.28 $120.00
7.00% $48.19
$100.00
6.00% $40.97
5.00% $35.54 $80.00
$60.00
$40.00 Page 4
$20.00
Value of
$120.00
$80.00
4.00% $31.31
3.00% $27.93 $60.00
2.00% $25.15
$40.00
$20.00
$0.00
% % % % % % % % %
. 00 00 00 00 00 00 00 00 00
10 9. 8. 7. 6. 5. 4. 3. 2.
Expected Growth Rate
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