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A firm comprised of all equity is not expected to have any FCF for the next 5 years. After that, the FCF is expected to
A firm comprised of all equity is not expected to have any FCF for the next 5 years. After that, the FCF is expected to be $120 million and grow by 3% after that. If the required return on equity is 7%, what is the terminal value of the company? a. $2.8 billion O b. $3.8 billion b O c. $2 billion O d. $2.4 billion A firm comprised of all equity is not expected to have any FCF for the next 5 years. After that, the FCF is expected to be $120 million and grow by 3% after that. If the required return on equity is 7%, what is the terminal value of the company? a. $2.8 billion O b. $3.8 billion b O c. $2 billion O d. $2.4 billion
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