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Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $ 8 0 , 0 0 0 and

Value of Operations
Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year,
FCF is expected to grow at a constant rate of 7%. The company's weighted average cost of capital is 13%.
a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round
your answer to the nearest cent.
$
b. Calculate Kendra's value operations. Do not round intermediate calculations. Round your answer to the nearest cent.
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