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The Free Cash Flows (In Millions)shown Below Are Forecast by Parker

Question 63

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The free cash flows (in millions) shown below are forecast by Parker & Sons.If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments) .
The free cash flows (in millions) shown below are forecast by Parker & Sons.If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments) . A) $1, 456 B) $1, 529 C) $1, 606 D) $1, 686 E) $1, 770


A) $1, 456
B) $1, 529
C) $1, 606
D) $1, 686
E) $1, 770

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