Question
Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13.0%, and the FCFs are expected to
Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value, in millions?
| Year | 1 | 2 | 3 |
| FCF | $15.0 | $10.0 | $40.0 |
| a. | $386.13 | |
| b. | $348.48 | |
| c. | $366.82 | |
| d. | $331.06 | |
| e. | $314.51 |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
