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
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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
Group of answer choices
P1,606
P1,925
P1837
P1,529
P1,686
P1,770
P1,456
P993
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