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1.20 Using the following forecast assumptions from Chapter 7 for Kellogg (K), the weighted average cost of capital for operations of 5.2 percent calculated in
1.20 Using the following forecast assumptions from Chapter 7 for Kellogg (K), the weighted average cost of capital for operations of 5.2 percent calculated in Chapter 9, and a continuing growth in residual operating income beyond the forecast horizon of 0.4 percent, calculate the value of K 's operations. How does this estimate of value compare to that arrived at using the cash flow-based valuation method in Chapter 10
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