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Assume the following free cash flows for Fischer Inc. for 2013 and forecasted FCFF for 2014 onward: Current Forecast Horizon Terminal ($ millions) 2013 2014
Assume the following free cash flows for Fischer Inc. for 2013 and forecasted FCFF for 2014 onward:
| Current | Forecast Horizon | Terminal |
($ millions) | 2013 | 2014 | 2015 | 2016 | 2017 | Year |
Free cash flows to the firm (FCFF) | $7,327 | $7,598 | $8,004 | $8,725 | $9,480 | $9,764 |
The DCF value of the firm using the FCFF information above, a discount rate of 7%, and an expected terminal growth rate of 2.5%, is:
Select one:
A. $193,978 million
B. $183,149 million
C. $ 50,898 million
D. $ 42,141 million
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