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PeaceWorks Medical Supply has a beta of 1.3 and a cost of capital (WACC) is 12.4 percent. The market risk premium is 7.4 percent and
PeaceWorks Medical Supply has a beta of 1.3 and a cost of capital (WACC) is 12.4 percent. The market risk premium is 7.4 percent and the risk-free rate is 3.6 percent. The firm's cash flow at Time 3 is $6,500. Future cash flow growth is forecast at a 3.0 percent rate. What is the terminal (horizon) value of the firm at Time 3?
Group of answer choices
$53,992
$63,601
$65,509
$69,149
$71,223
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