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a. Peralta Inc. has projected FCF of 3.1 million, 4.2 million, 2.6 million for the next 3 years, thereafter, FCF is expected to grow at

a. Peralta Inc. has projected FCF of 3.1 million, 4.2 million, 2.6 million for the next 3 years, thereafter, FCF is expected to grow at 5%. If the cost of capital is 22%, what is the Horizon value for the firm at year 3?

b. From the question above, find the contribution of the horizon value to the firm value (PV of horizon, Firm value).

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