Question
Gere Furniture forecasts free cash flows of $30 million in Year 1 and $20 million in year 2, and it expects FCF to grow at
Gere Furniture forecasts free cash flows of $30 million in Year 1 and $20 million in year 2, and it expects FCF to grow at a constant rate of 4% thereafter. If the weighted average cost of capital is 10% and the cost of equity is 15%, what is the current value of operations?
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$226.45 million
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$257.85 million
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$209.50 million
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$215.70 million
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The Socionomic Theory Of Finance
Authors: Robert R. Prechter
1st Edition
0977611256, 978-0977611256
