Bavarian Sausage free cash flow for the current year is $6,750,000 and investors believe that the company's free cash flow will grow by 5% annually forever.If Bavarian sausage's weighted average cost of capital is 15%,what is their enterprise value?
A) $67,500,000
B) $85,350,000
C) $56,780,000
D) $70,875,000
Correct Answer:
Verified
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