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13. 14. Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However,
13. 14. Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $70.00 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. The weighted average cost of capital is 11.0%. What is the horizon (or continuing) value (in Omillions) at t-5? a. $1,461 million 15. 16. b. $1,657 million c. $1,147 million 17. d. $1,556 million Oe. $1,727 million 3
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
