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Posted on Jul 30, 2024

Suppose Boyson Corporation's projected free cash flow for next year is FCF 1 = $150,000, and FCF is expected to grow at a constant rate

Suppose Boyson Corporation's projected free cash flow for next year is FCF₁ = $150,000, and FCF is expected to grow at a constant rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the firm's total corporate value?

a. $3,150,000

b. $2,850,000

c. $2,707,500

d. $2,572,125

e. $3,000,000

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