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Charlies Corporation is a fast-growing supplier of consumer products. Analysts project the following free cash flow (FCF) during the next three years (year 1: -$20

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Charlies Corporation is a fast-growing supplier of consumer products. Analysts project the following free cash flow (FCF) during the next three years (year 1: -$20 millions; year 2: $30 millions, year 3: $40 millions), after which FCF is expected to grow at a constant 7% rate. The company's cost of capital is WACC - 13%. Question 42. What's the company's horizon value? A. $733 B. $723 C. $713 D. $743 E. $753 10 Question 43. What is the firm's current value of operations? A. S528 B. $628 C. $428 D. $728 E. $328 Question 44. Suppose the firm has $10 millions in marketable securities, S100 millions in debt, and 10 million shares of stock. What's the price per share PPS? A. $49 B. $52 C. $33 D. $46 E. $51

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