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You are considering an acquisition of firm XYZ, and have prepared the following forecasts for it: The appropriate discount rate is 16%, and cash flows

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You are considering an acquisition of firm XYZ, and have prepared the following forecasts for it: The appropriate discount rate is 16%, and cash flows after year 4 will grow at 3% per year in perpetuity. What is the continuation value (terminal value) in year 4 for cash flows after year 4 ? What is the value of the firm today? What is the continuation value in year 4 for cash flows after year 4 ? The continuation value is $ (Round to the nearest dollar.) What is the value of the firm today The value today is $ (Round to the nearest dollar.)

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