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ABC Inc. is a firm located in New York, NY . The firm is expected to generate cash flows of $ 5 4 , 0

ABC Inc. is a firm located in New York, NY

.

The firm is expected to generate cash flows of $

54, 000, 000

eight years from today. Investors and creditors require a return of

6 %,

which is also the firm

s weighted average cost of capital.

1)

Compute ABC

s value using the Domestic Valuation Model.

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