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The Macadam Company is all-equity financed and has the following free cash flows (FCF) in years 1-4: $3 million ($3M); $3.7M; $4M; $4.2M. After year

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The Macadam Company is all-equity financed and has the following free cash flows (FCF) in years 1-4: $3 million ($3M); $3.7M; $4M; $4.2M. After year 4, the firm management expects FCF to grow at a constant rate of growth per annum given below. With a WACC that is double the constant growth rate, what is the horizon value in year 4 of Macadam Co? Constant Growth Rate 6.35%

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