OFCs free cash flows are expected to be $300 million next year and $425 million two years from now. After that, free cash flows are expected to grow at a constant rate of 3% per year forever. OFCs WACC is 11%, its cost of equity is 14% and its cost of debt is 9.5%. They have $200 million of debt and $25 million in cash on their balance sheet. Use a discounted cash flow model to find OFCs current equity value (rounded to the nearest million dollars).

Question 4 1 pts OFC's free cash flows are expected to be $300 million next year and $425 million two years from now. After that, free cash flows are expected to grow at a constant rate of 3% per year forever. OFC's WACC is 11%, its cost of equity is 14% and its cost of debt is 9.5%. They have $200 million of debt and $25 million in cash on their balance sheet. Use a discounted cash flow model to find OFC's current equity value (rounded to the nearest million dollars). $4,927 million $4,881 million O $4,416 million O $5,056 million $4,616 million