ofc's free cash flows are expected to be $300 millionaire next year and $425 million two years from now. After that, free cash flows are expected to grow at a constant rate of 3% per year forever. OFC's WACC is 11%, its cost of equity is 14%, and its cost of debt is 9.5%. they have $200 million of debt and $25 million in cash on their balance sheet. Use a discounted cash flow model to find OFC's current equity value.
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