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You expect DM Corporation to generate the following free cash flows over the next five years: Beginning with year six, you estimate that DM's free
You expect DM Corporation to generate the following free cash flows over the next five years: Beginning with year six, you estimate that DM's free cash flows will grow at 6% per year and that DM's weighted average cost of capital is 15%. Calculate the enterprise value for DM Corporation.
Year 2 4 FCF ( millions) 75 84 96 120Step by Step Solution
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