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Advanced Micro Devices (AMD) forecasts the free cash flows (in millions) shown below. The weighted average cost of capital for AMD is 13 percent, and

Advanced Micro Devices (AMD) forecasts the free cash flows (in millions) shown below. The weighted average cost of capital for AMD is 13 percent, and the free cash flows are expected to continue growing at a 5 percent rate after Year 3. What is the firms total corporate value, in millions?

Year 1 2 3

FCF -$15.0 $10.0 $40.0

Select one:

a. I am not sure.

b. $386.13

c. $348.48

d. $331.06

e. $314.51

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