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You are a financial analyst in an investment advisory firm and you are helping your client to evaluate the value of a potential M&A target,

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You are a financial analyst in an investment advisory firm and you are helping your client to evaluate the value of a potential M&A target, WWG, inc. You have already made your forecast on WWG's free cash flows from Y1 to Y5. You are to estimate its continuation, or terminal value of enterprise in Year 5 using the free cash flow method. After careful analysis, you believe that the free cash flows after Year 5 will increase 4% a year; its WACC is 10.5% and the free cash flow at Year 6 is projected to be $ 12.3 million. What would be your estimation of the continuation value of enterprise for WWG in Year 5 (in millions)? O $143.0 O $189.2 O $200.5 O $262.6

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