Kedia Inc.forecasts a negative free cash flow for the coming year,FCF1 = -$10 million,but it expects positive numbers thereafter,with FCF2 = $38 million.After Year 2,FCF is expected to grow at a constant rate of 4% forever.Assume the firm has zero non-operating assets.If the weighted average cost of capital is 14.0%,what is the firm's total corporate value,in millions? Do not round intermediate calculations.
A) $375.72
B) $308.33
C) $357.83
D) $324.56
E) $340.79
Correct Answer:
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