Question
15. A Corporation forecasts its FCF in year one to be $15 and in year 2 as $25 million. After the second year the company's
15. A Corporation forecasts its FCF in year one to be $15 and in year 2 as $25 million. After the second year the company's FCF will grow at a constant rate of 5.5% per year forever. If the firm's WACC is 12.5%, what is the value of the firm operations to the nearest million?
a.$358
b.$367
c.$200
d.$208
e.$354
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
