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Kale IncForecasts the Free Cash Flows (In Millions)shown Below  Year 12 Free Cash flow $50$115\begin{array} { l r r } \text { Year } & 1 & 2 \\\hline \text { Free Cash flow } & - \$ 50 & \$ 115\end{array}

Question 61

Multiple Choice

Kale Inc.forecasts the free cash flows (in millions) shown below.Assume the firm has zero non-operating assets.If the weighted average cost of capital is 11.0% and FCF is expected to grow at a rate of 5.0% after Year 2,then what is the firm's total corporate value (in millions) ? Do not round intermediate calculations.  Year 12 Free Cash flow $50$115\begin{array} { l r r } \text { Year } & 1 & 2 \\\hline \text { Free Cash flow } & - \$ 50 & \$ 115\end{array}
?


A) $1,530
B) $1,833
C) $1,295
D) $1,446
E) $1,682

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