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. A company currently has $300 million in debt (market value) and forecasts the free cash flows (in millions) shown below. If the weighted average

. A company currently has $300 million in debt (market value) and forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and the free cash flows are expected to grow at a rate of 3% after Year 2, what is the market value, in millions, of the companys equity?

Year

1

2

Free cash flow

-$140

$100

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