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HappyTunes Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 11.75%, the cost of equity is 19.25%,

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HappyTunes Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 11.75%, the cost of equity is 19.25%, and the FCFs are expected to continue growing at a 5.25% rate after Year 5. Assuming that the ROIC is expected to remain constant in Year 5 and beyond, what is the Year O value of operations? Year: 1 2 3 5 Free cash flow: -$995 $15 $55 $80 $125 O $139.31 million 0 -$310.32 million $387.53 million -$176.72 million O $445.46 million

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