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Inc. forecasts that it will have the free cash flows (in millions) shown below. The cost of equity is 14%, and weighted average cost of
Inc. forecasts that it will have the free cash flows (in millions) shown below. The cost of equity is 14%, and weighted average cost of capital is 10%. The free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the firm's total corporate value, in millions?
Year | 1 | 2 | 3 |
Free cash flow | $100.00 | $40.00 | $45.00 |
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