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Good Guys Auto is expected to generate the following free cash flow over the next years : Time 0 1 2 3 4 5 ($millions)
Good Guys Auto is expected to generate the following free cash flow over the next years :
Time 0 1 2 3 4 5
($millions) $0 $50 $60 $80 $70 $70....
and then from years 5 onward the cash flows will be a constant $70 million each year. The discount rate is 10%. The company has no excess cash and $250 million in debt and 40 million shares outstanding. What is its enterprise value?
A. $10.94 million
B. $387.6 million
C. $700.0 million
D. $681.1 million
Get I get some detailed explanationS for this question?
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