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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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