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Misra Inc. forecasts a free cash flow of $35 million in Year 3, i.e., at t = 3, and it expects FCF to grow at

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Misra Inc. forecasts a free cash flow of $35 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 9.0% and the cost of equity is 14.0%, then what is the horizon, or continuing, value in millions at t = 3? a. $1,090 million = b. $948 million c. $671 million d. $1,000 million O e. $1,055 million

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