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After forecasting financial statements for a firm you are valuing, you determine that free cash flow from operations is valued at $3 million over the

After forecasting financial statements for a firm you are valuing, you determine that free cash flow from operations is valued at $3 million over the planning period with a $4 million terminal value. You also determine that non-operating income is valued at $1 million over the planning period with a $2 million terminal value. You then estimate the enterprise value to be:

a.

$3 million

b.

$4 million

c.

$7 million

d.

$10 million

e.

None of the above

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