Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constant rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the value of its operations?
A) $2,572,125
B) $2,707,500
C) $2,850,000
D) $3,000,000
E) $3,150,000
Correct Answer:
Verified
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