Ergo Unlimiteds current years free cash flow to equity is $10 million. It is projected to grow

Question:

Ergo Unlimited’s current year’s to equity is $10 million. It is projected to grow at 20% per year for the next five years. It is expected to grow at a more modest 5% beyond the fifth year. The firm estimates that its will be 12% during the next five years and then will drop to 10% beyond the fifth year as the business matures. Estimate the firm’s current market value.

Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...