Consider the following data:
FCF1 = $20 million; FCF2 = $20 million; FCF3 = $20 million.Assume that free cash flow grows at a rate of 5% for year 4 and beyond.If the weighted average cost of capital is 12%,calculate the value of the firm.
A) $300 million
B) $261.57 million
C) $213.53 million
D) $238.69 million
Correct Answer:
Verified
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