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RedSea, a Palestinian Corporation expects to generate free cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows

RedSea, a Palestinian Corporation expects to generate free cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of 5 percent per year forever. If the firm's average cost of capital is 15 percent, the market value of the firm's debt is $500,000, and RedSea has a half-million shares of stock outstanding, what is the value of RedSea___

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