Akyol Corporation Is Undergoing a Restructuring, and Its Free Cash

Multiple Choice

Akyol Corporation is undergoing a restructuring, and its free cash flows are expected to be unstable during the next few years. However, FCF is expected to be $50 million in Year 5, i.e., FCF at t = 5 equals
$50 million, and the FCF growth rate is expected to be constant at 6% beyond that point. If the weighted average cost of capital is 12%, what is the horizon value (in millions) at t = 5?

A) $719
B) $757
C) $797
D) $839
E) $883