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Firm FIAs projected cash flows (FCFF) are as follows: Year 1 2 3 4 CF 500 1,500 2,000 3000 Assume that the discount rate is
Firm FIAs projected cash flows (FCFF) are as follows:
Year | 1 | 2 | 3 | 4 |
CF | 500 | 1,500 | 2,000 | 3000 |
Assume that the discount rate is 12.5% and you use exit multiples to estimate the terminal value. The firm value at year 4 equals 10 times its cash flow. What is the intrinsic value of the firm?
13,578.95
27,865.24
21,763.15
34,000.00
16,246.81
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