Bulldog Industries
An analyst seeks to determine the value of Bulldog Industries. After careful research, the analyst believes that free cash flows for the firm will be $80 million in 2004 and will grow at 10% for 2005 and 2006. The free cash flows will grow at a rate of 5% after 2006.
-If Bulldog Industries has a weighted average cost of capital of 10%,find the market value of the firm.(assume that we are at January 1,2004)
A) $2,085.26
B) $1,946.52
C) $1,745.45
D) $1,665.45
Correct Answer:
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