Jeanette's Medical Supply has a beta of 1.3 and its RWACC is 12.4 percent.The market risk premium is 7.4 percent and the risk-free rate is 3.6 percent.The firm's cash flow at Time 3 is $62,500.The cash flows have a 2.7 percent rate of growth.What is the terminal value of the firm at Time 3?
A) $648,056.60
B) $661,726.80
C) $667,229.73
D) $644,329.90
E) $649,688.15
Correct Answer:
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