40

40. Consider a company projected to generate free cash flow of $100 million next year, projected to grow at a stable 2.0% annual rate in perpetuity. If the company's weighted average cost of capital is 11%, what is its enterprise value? a) $869.6 million b) $909.1 million c) $952.4 million d) $1,111.1 million e) $1,176.5 million 41. A firm issues zero-coupon bonds with a face value of $1,000 and time to maturity of 5 years. The