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Brook Corporation's free cash flow for the current year (FCF 0 ) was $1.00 million. Its investors require a 16% rate of return on Brooks
Brook Corporation's free cash flow for the current year (FCF0) was $1.00 million. Its investors require a 16% rate of return on Brooks Corporation stock (WACC = 16%). What is the estimated value of the value of operations if investors expect FCF to grow at a constant annual rate of:
(1) (- 4%)
(2) 0%
(3) 5%
(4) 13%
Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to two decimal places. PLEASE SHOW ALL WORK.
- $ (in millions)
- $ (in millions)
- $ (in millions)
- $ (in millions)
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