Jeanette's Medical Supply has a beta of 1.47 and its RWACC is 11.8 percent.The market risk premium is 7.4 percent,and the risk-free rate is 3.6 percent.The firm's cash flow at Time 3 is $73,900 with a growth rate of 2.2 percent.What is the terminal value of the firm at Time 3?
A) $748,056.60
B) $786,727.08
C) $667,229.73
D) $844,329.90
E) $649,688.15
Correct Answer:
Verified
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