At the end of 2019, you forecast that free cash flow of the firm for 2020 will be $350 million. You believe the free cash flow will grow at 6% per year thereafter. What is enterprise value of the firm if the required return is 10%?

Select one:

a.

$4,000 million

b.

$6,250 million

c.

$8,750 million

d.

$9,600 million