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Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero non- operating assets. If the weighted average cost
Kale Inc. forecasts the free cash flows (in millions) shown below. Assume the firm has zero non- operating assets. If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2, then what is the firm's total corporate value (in millions)? Do not round intermediate calculations. Year 1 2 Free Cash flow -$50 $145 O a. $2,260 O b. $2,452 O c. $2,345 O d. $1,876 e. $2,132
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