Suppose an analyst estimates that free cash flow will be $2.43 million in year 5.What is the present value of this free cash flow if the company cost of capital is 12%,the WACC is 10%,and the equity cost of capital is 15%?
A) 1.21 million
B) 1.38 million
C) 1.51 million
D) 2.43 million
Correct Answer:
Verified
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