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Smith Industries 3-year forecast of free cash flow (FCF) is provided below. Year 1 Year 2 Year 3 Free Cash Flow Forecast $350,000 $425,000 $500,000

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Smith Industries 3-year forecast of free cash flow (FCF) is provided below. Year 1 Year 2 Year 3 Free Cash Flow Forecast $350,000 $425,000 $500,000 R = 9% WACC - 11% Constant Growth Rate = 4% (Begins after Year 3) Using above information, calculate Smith Industries terminal value. Round answer to nearest tenth of a $million. $6.8 million O $5.4 million O $4.9 million $7.2 million

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