Multiple Choice
Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -$10 million, but it expects positive numbers thereafter, with FCF2 = $25 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14.0%, what is the firm's total corporate value, in millions?
A) $200.00
B) $210.53
C) $221.05
D) $232.11
E) $243.71
Correct Answer:
Verified
Correct Answer:
Verified
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