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Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be $10 million, but its FCF at

Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be $10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 7% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions? a. $186 b. $193 c. $167 d. $211 e. $242

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