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The ABC Inc. current Free cash flow is $80M. The FCF growth rate for the next two years is 40% per year. Thereafter the FCF

The ABC Inc. current Free cash flow is $80M. The FCF growth rate for the next two years is 40% per year. Thereafter the FCF growth rate is 5% per year. The WACC is 13%. Derive the companys horizon value.

A.

$2,058M

B.

$2,956M

C.

$3,579M

D.

$3,967M

E.

$4,690M

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