36.

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 14.0%. What is the horizon (or continuing) value (in millions) at t = 5?

a. $1,147 million

b. $1,064 million

c. $876 million

d. $933 million

e. $994 million