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ABC Inc. forecasts that it will have the free cash flows (in millions) shown below. If the weighted average cost of capital is 14% and
ABC Inc. forecasts that it will have the free cash flows (in millions) shown below. If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate since Year 2, what is the firms total corporate value, in millions? (Hint: The constant growth rate is the growth rate from Year 2 to Year 3.) Do not round intermediate calculations.
Answer just the dollar amount without the + or - sign. Round to two decimal places.
Year | 1 | 2 | 3 |
Free cash flow | -$20.00 | $48.00 | $50.50 |
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