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Question 2 USF Inc. reported after-tax operating income of $40 million the most recent year on capital invested of $400 million. The firm expects operating

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Question 2 USF Inc. reported after-tax operating income of $40 million the most recent year on capital invested of $400 million. The firm expects operating income to grow 7% a year for the next three years and 3% there after. The firm's cost of capital is 10%. Part A Estimate the firm's terminal value at the end of Year 3. Part B If you expected operating income after Year 3 to have no growth, estimate the terminal value. Assume that the firm's reinvestment needs remain unchanged from Part A. Part C If you expected operating income after Year 3 to have -5.00% growth, estimate the terminal value. Assume that the firm's reinvestment needs remain unchanged from Part A

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