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Suppose Boyson Corporation's projected free cash flow for next year is FCF 1 = $250,000, and FCF is expected to grow at a constant rate

Suppose Boyson Corporation's projected free cash flow for next year is FCF 1 = $250,000, and FCF is expected to grow at a constant rate of 6.5%.Assume the firm has zero non-operating assets.If the company's weighted average cost of capital is 11.5%, then what is the firm's total corporate value?

  1. $3,850,000
  2. $4,000,000
  3. $5,000,000
  4. $5,050,000
  5. $4,200,000

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