问题如下：
1. What is the present value per share of High Tech stock using the discounted cash flow approach if the terminal value of High Tech is based on using the constant growth model to determine terminal value?
选项：
A.$39.38.
B.$40.56.
C.$41.57.
解释：
C is correct.
The estimated stock value is $41.57.
The value of High Tech = Total PV (present value) of free cash flows during the first four years + PV of the terminal value of High Tech at the end of the fourth year using the constant growth model.
Total PV of free cash flows during the first four years=
Based on the constant growth model, the terminal value (TV) of High Tech at the end of the fourth year is TV = FCF at the end of the fifth year/(k – g) = (23 × 1.065)/(0.11 – 0.065) = $544.33 million.
PV of the terminal value =
Estimated value of High Tech = 57.09 + 358.57 = $415.66 million.
Estimated stock price = 415.66 million/10 million shares = $41.57.
题目已经给了fourth year CF = 23 了，"He also estimates that after four years High Tech would be worth 23 times its free cash flow at the end of the fourth year." 那么这个条件好像没有用上是么？4年后估值是第四年的CF的23倍，也就是TV = 23 * 23 ？
