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You are valuing a company that has an expected nominal growth rate of Free Cash Flow to the Firm (FCF) in perpetuity of 3%. For the last year of estimation, the expected FCF is £ 4500. The estimated terminal value of this company is £ 52000. The estimated cost of capital is: O a. not possible to answer with available information O b. 11.9% O c. 13.2%

You are valuing a company that has an expected nominal growth rate of Free Cash Flow to the Firm (FCF) in perpetuity of 3%. For the last year of estimation, the expected FCF is £ 4500. The estimated terminal value of this company is £ 52000. The estimated cost of capital is: O a. not possible to answer with available information O b. 11.9% O c. 13.2%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are valuing a company that has an expected nominal growth rate of Free Cash Flow to the Firm (FCF) in perpetuity of 3%. For the last year of estimation, the expected FCF is £ 4500. The estimated terminal value of this company is £ 52000. The estimated cost of capital is: O a. not possible to answer with available information b. 11.9% O c. 13.2%
Transcribed Image Text:You are valuing a company that has an expected nominal growth rate of Free Cash Flow to the Firm (FCF) in perpetuity of 3%. For the last year of estimation, the expected FCF is £ 4500. The estimated terminal value of this company is £ 52000. The estimated cost of capital is: O a. not possible to answer with available information b. 11.9% O c. 13.2%
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