What is the valuation using WACC of 11% and FCF of $400,00 with constant growth of 5%?

a. 7770000 b. 6000000 c. 7000000 d. 6666667

2. A friend has asked your financial advice. He would like to have $2,500,000 in his investment account 25 years from now. He expects a stable 6% return and has $500,000 now.

a How much does he need to add to his account annually to achieve his goal?

b What would he need to add annually if his return was reduced to 5.5%?

c What would he need to add annually if his return was increased to 7%?