Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operatingassets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 4.0% rateafter Year 3. What is the firm's total corporate value (in millions)? Do not round intermediate calculations. Year 1 2 3 FCF- $30.0 $10.0 $30.0 a. $242.33 million b. $233.09 million c. $273.83 million d. $261.47 million e. $221.54 million

Weighted Average Cost of Capital = r = 13%Growth rate after year 3 = g = 4%Free Cash flow for year 1…

Answered: Ryan Enterprises forecasts the free…

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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You have the following cash flows for the firm; What is NPV, if discount rate is 10% ? CF0 = -467 (CF0 is always negative. It is your initial investment) CF1 = 625 CF2 = 684 CF3 = 666 CF4 = 753 CF5 = 976
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