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You are valuing ABC Corp. As part of your valuation, you assume that the the firm will enter a long-term growth phase after 10 years,
You are valuing ABC Corp. As part of your valuation, you assume that the the firm will enter a long-term growth phase after 10 years, with a free cash flow in year 10 of $14 million and a growth rate of 4%. If you demand a 16% return on your investment, what would be the terminal value of the firm's free cash flow at year 10?
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