Question: You are trying to value a new AI startup. This startup will be financed with 1 0 % debt and 9 0 % equity and

You are trying to value a new AI startup. This startup will be financed with 10% debt and 90% equity and is expected to maintain this capital structure. The unlevered cost of capital in the industry is 15%. The cost of debt for this company is 4%. You estimate that the FCF for the first 4 years will be $-10 M (t=1), $0(t=2), $5 M (t=3), and $9 M (t=4). Additionally, you estimate that the EBIT in year 4 will be $14 M. The tax rate for this company is 15%.
Q1) What is the value of the company today if you believe the growth rate of FCF after year 4 is 4%?
Q2) What is the value of the company today if you believe the EV/EBIT exit multiple in year 4 will be 10.4?
Q3) Given your answer to Q7, if the company had 5 million shares, what should the price of each share be?
Input the Terminal Value in the answer prompt.

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