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Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is
Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $85.00 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. The weighted average cost of capital is 9.0%. What is the horizon (or continuing) value (in millions) at t = 5? a. $3,621 million b. $3,400 million C. $1,393 million d. $3,192 million e. $3,706 million
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