You are analyzing the firm Lipswich Film Corp. The firm's fiscal year ended 30 September 2020, and you must estimate Lipswich Film Corp's value as of 1 October. You have the following actual and forecast year-end free cash flows:

FCFF(2019) 112000

FCFF(2020) 108000

FCFF(2021) 108000

FCFF(2022) 108000

FCFF(2023) 108000

In addition, you have estimated that the terminal growth rate should be 3%, the PE is 25, the beta is 1.23, the cost of equity is 10%, the after tax cost of debt is 5%, the weight of debt is 60%, and the risk-free rate is 2%.

What is the estimated Free Cash Flow to the Firm (FCFF) value?

Select one:

a. 1,219,315

b. 1,534,009

c. 2,091,118

d. none of these are correct

e. 2,497,926