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C. $642.86 milli d. $450 million p Flag question Marked out of 10 Not yet answered Question 5 Wayfarers Inc. is a risky technology company

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C. $642.86 milli d. $450 million p Flag question Marked out of 10 Not yet answered Question 5 Wayfarers Inc. is a risky technology company that is expected to have a cost of capital of 12% for the next 10 years. At the end of year 10. klo anticipated that the firm will become a mature company, earning a return on invested capital equal to its stable period cost of capital of tow in perpetuity. If the expected after-tax operating income in year 11 is $80 million and the expected growth rate in perpetuilty is S. estimate the present value of the terminal value at the end of year 10. Net Select one: a. $257.58 million b. 5308.43 million 536797 million d. $440.62 million

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