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Calculate the firm value of BNA Inc: Free Cash Flow to the Firm ( FCFF ) in t = 0 equals 1 , 0 0

Calculate the firm value of BNA Inc:

Free Cash Flow to the Firm

(

FCFF

)

in t

= 0

equals

1, 000, 000 .

The FCFF will grow at

2 %

in all subsequent years as a perpetuity.

The WACC is

10.0 % .

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