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The risk-free rate of interest is 3% and the market risk premium is 5%. Alpha Companys hardware division has an asset beta of 1.4, a
The risk-free rate of interest is 3% and the market risk premium is 5%. Alpha Companys hardware division has an asset beta of 1.4, a free cash flow of $450 million, and an expected growth rate of 4.0%. The value of the hardware division (in $millions) is closest to __________. $4,500 $7,500 $8,750 $10,000 |
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