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RMB Enterprises wishes to assess the value of its Rhythm Unit that produces band instruments such as drums and bass viola that mainly supply rhythm.

RMB Enterprises wishes to assess the value of its Rhythm Unit that produces band instruments such as drums and bass viola that mainly supply rhythm. This division has incurred debt with a market value of $825,000 and has no preferred stock. Beyond 2015, the estimated free cash flow is expected to grow at a 3% rate. Using the free cash flow model, an 11% required rate of return, and this information, estimate the Rhythm unit

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