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37. Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -$13 million, but it expects positive numbers thereafter, with FCF2
37. Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -$13 million, but it expects positive numbers thereafter, with FCF2 = $48 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14.0%, what is the firm's total corporate value, in millions? Do not round intermediate calculations. a. $380.67 million b. $499.20 million c. $394.88 million d. $315.21 million e. $409.65 million.
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