Question
Kollo Enterprises has a beta of 1.12, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium
Kollo Enterprises has a beta of 1.12, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Kollo's required rate of return? Do not round your intermediate calculations.
Group of answer choices
11.60%
11.19%
11.39%
9.34%
10.26%
Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firms total corporate value (in millions)? Do not round intermediate calculations.
Year | 1 | 2 | 3 |
FCF | -$15.0 | $10.0 | $35.0 |
Group of answer choices
$343.93
$333.81
$310.21
$300.09
$337.18
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