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Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF
Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dozier's weighted average cost of capital is WACC = 12%.What is the current value of operations for Dozier?
Year123Free cash flow ($ millions)($10)$25$50
$750.00$527.89$800.00$580.43$713.33
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