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Structure this problem as a single-period capitalization of forward benefits problem and assume the following: Next period's (year) Free Cash Flow to Invested Capital on

Structure this problem as a single-period capitalization of forward benefits problem and assume the following:

  • Next period's (year) Free Cash Flow to Invested Capital on an After-Tax basis is 2,468,000
  • WACC-after tax is 10%
  • Perpetual Growth rate on after-tax cash flows is 4%
  • WACC-befor tax is 12%
  • Perpetual Growth rate on before-tax cash flows is 4%

Given these assumptions, compute (to the nearest whole dollar) next period's Free Cash Flow to Invested Capital on a Before Tax Basis.

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