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Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -$19 million, but it expects positive numbers thereafter, with FCF2 =

Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -$19 million, but it expects positive numbers thereafter, with FCF2 = $49 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14.0%, what is the firm's total corporate value, in millions? Do not round intermediate calculations.

a. $509.60 million
b. $398.08 million
c. $413.16 million
d. $383.57 million
e. $317.91 million

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