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mini case study: Temp Force Company pg. 339 D. Suppose the free cash flow at Time 1 is expected to grow at a constant rate
mini case study: Temp Force Company pg. 339
D. Suppose the free cash flow at Time 1 is expected to grow at a constant rate of gL forever. If gL < WACC, what is a formula for the present value of excepted free cash flows when discounted at the WACC? If the most recent free cash flow is expected to grow at a constant rate of gL forever (and gL < WACC), what is a formula for the present value of expected free cash flows when discounted at the WACC?
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