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If you assume that FCFE will grow by 10% in the next 5 years and then slow down to 4.2%
thereafter, what would be the price of the firm's stock? Are your price estimates in the case
higher or lower than the the current market price? What are some of the possible explanations for
why your estimate is higher or lower than the current market price?
stock: Verizon Communications Inc
FCFE in 2022: 21.45 billions
shares outstanding: 4.2 billions

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  • 1. If you assume that FCFE will grow by 10% in the next 5 years and then slow down to 4.2% thereafter, what would be the price of the firm's stock? Are your price estimates in the case higher or lower than the the current market price? What are some of the possible explanations for why your estimate is higher or lower than the current market price? stock: Verizon Communications Inc FCFE in 2022: 21.45 billions shares outstanding: 4.2 billions