1. Assume the following free cash flows for Zhang Inc. for 2011 and forecasted FCFF for 2012 onward (in millions):

   	Current	Forecast Horizon	Terminal Year
   ($millions)	2011	2012	2013	2014	2015
   Free cash flows to the firm (FCFF)	$5,138	$5,396	$5,794	$6,624	$7,290	$7,578

   The DCF value of the firm using the FCFF information above, a discount rate of 8%, and an expected terminal growth rate of 3.5%, is:

   $144,360 million

   $135,190 million

   $ 37,820 million

   $ 25,738 million

   None of the above