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Misra Inc. forecasts a free cash flow of $75 million in Year 3, i.e., at t = 3, and it expects FCF to grow at

Misra Inc. forecasts a free cash flow of $75 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 8.5% and the cost of equity is 14.5%, then what is the horizon, or continuing, value in millions at t = 3? a. $2,370 million b. $2,713 million c. $2,638 million d. $1,439 million e. $2,500 million

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