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? . Year 1 2 Free cash flow -P30 P130 Group of answer choices P1,606 P1,925 P1837 P1,529 P1,686 P1,770 P1,456 P993
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? . Year 1 2 Free cash flow -P30 P130 Group of answer choices P1,606 P1,925 P1837 P1,529 P1,686 P1,770 P1,456 P993
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 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?
.
Year 1 2
Free cash flow -P30 P130
.
Year 1 2
Group of answer choices
P1,606
P1,925
P1837
P1,529
P1,686
P1,770
P1,456
P993
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