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 companys cost of capital is WACC = 13%.

Question 42. Whats the companys horizon value?

A. $733

B. $723

C. $713

D. $743

E. $753

Question 43. What is the firms current value of operations?

A. $528

B. $628

C. $428

D. $728

E. $328