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Question 39 A firm's free cash flow in 2020 (FCF 0 ) was $180 million, and expect its free cash flow has a constant growth

Question 39

A firm's free cash flow in 2020 (FCF₀) was $180 million, and expect its free cash flow has a constant growth rate at 5%. If the weight average cost of capital (WACC) for the firm is 10%, what's the estimated value for the firm's operating assets?

$1,800 millions

$3,600 millions

$3,780 millions

$3,980 millions

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