Compute the value of a firm with free cash flows of $9000,$7000,and $5000 over the next three years,a terminal firm value of $30,000 after three years,and the unlevered cost of capital is 10%.Assume that the interest rate tax shield is zero.
A)$36,109
B)$37,098
C)$38,745
D)$40,263
E)$42,772

Question

Quizplus · Accepted Answer

The Answer of Compute the value of a firm with free cash flows of $9000,$7000,and $5000 over the next three years,a terminal firm value of $30,000 after three years,and the unlevered cost of capital is 10%.Assume that the interest rate tax shield is zero.
A)$36,109
B)$37,098
C)$38,745
D)$40,263
E)$42,772

Compute the Value of a Firm with Free Cash Flows