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Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant

Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant 3% rate after Year 3. FCF Year 1 $715 Year 2 $750 Year 3 $805 a. What is the horizon value of the unlevered operations?

b. What is the total value of unlevered operations at Year 0

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