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2. Consider the following data for Kriya Company: Year 23 Free Cash Flow (FCF) (in millions) 5 6 6.24 A constant growth rate of 4

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2. Consider the following data for Kriya Company: Year 23 Free Cash Flow (FCF) (in millions) 5 6 6.24 A constant growth rate of 4 percent is sustained forever after year 3. The weighted average cost of capital is 10 percent. a. Calculate the value of the firm. b.Calculate the present value of the horizon value. (Assume that the horizon value includes the 6.24M FCF in year 4.)

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