Leo's Cars has a beta of 1.1 and its RWACC is 13.6 percent.The market risk premium is 7.2 percent,and the risk-free rate is 2.3 percent.The firm's cash flow at Time 4 is $28,800 with a growth rate of 2.1 percent.What is the value of the firm at Time 4?
A) $273,584.91
B) $255,693.91
C) $251,004.16
D) $247,399.38
E) $260,729.20
Correct Answer:
Verified
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