Kale Inc. forecasts the free cash flows to the firm (in millions) shown below. If the weighted average cost of capital i

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answerhappygod
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Kale Inc. forecasts the free cash flows to the firm (in millions) shown below. If the weighted average cost of capital i

Post by answerhappygod »

Kale Inc. forecasts the free cash flows to the firm (in
millions) shown below. If the weighted average cost of capital is
11.0%, cost of equity is 16%, and FCF to the Firm is expected to
grow at a rate of 5.0% after Year 2, what is the firm's total
corporate value, in millions?

Free Cash Flow
Year 1 (-30)
Year 2 130
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