Suppose Leonard, Nixon, & Shull Corporation's projected free cash flow for next year is $100,000, and FCF is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the value of its operations?
A) $1,714,750
B) $1,805,000
C) $1,900,000
D) $2,000,000
E) $2,100,000
Correct Answer:
Verified
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