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An analyst has estimated that the post merger free cash flows for Company Y is 10, 15, and 17. After year 3 she projects the
An analyst has estimated that the post merger free cash flows for Company Y is 10, 15, and 17. After year 3 she projects the cash flow to grow at a constant rate of 8 percent. The discount rate is 11 percent. What is the value of the firm using discounted cash flow?
A. $481
B. $575
C. $34
D. $720
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