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Unlevered Value Richter Manufacturing has an 8% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at
Unlevered Value Richter Manufacturing has an 8% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant 2% rate after Year 3. Year 1 Year 2 Year 3 FCF $710 $745 $790 a. What is the horizon value of the unlevered operations? Do not round intermediate calculations. Round your answer to the nearest dollar. $ b. What is the total value of unlevered operations at Year 0? Do not round intermediate calculations. Round your answer to the nearest dollar. $
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