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Constant FCF Growth Valuation Brook Corporation's free cash flow for the current year (FCF0) was $3.75 million. Its investors require a 16% rate of return

Constant FCF Growth Valuation

Brook Corporation's free cash flow for the current year (FCF0) was $3.75 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) - 2%, (2) 0%, (3) 2%, or (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.

  1. $--------------million
  2. $----------million
  3. $-----------million
  4. $------------million

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