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An analyst seeks to determine the value of Bulldog Industries. free cash flows for the firm will be $80 million in the upcoming year (year

An analyst seeks to determine the value of Bulldog Industries. free cash flows for the firm will be $80 million in the upcoming year (year 1) and will grow at 10% annually for each of the two following years (years 2 and 3). The free cash flows will grow at a rate of 5% after year 3. What is the Terminal Value (in millions of $) of Bulldog at the end of year 3 at a WACC of 10%? A) 1,936 B) 2,033 C) 1,016 D) 2,274

Correct answer should be 2033. Please show the work, thanks.

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