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A Company Forecasts Growth of 6% for 5 Years and 3

Question 34

Multiple Choice

A company forecasts growth of 6% for 5 years and 3% thereafter. Given last year's cash flow was $100, what is the horizon value if the company cost of capital is 8%?


A) $0
B) $1,672
C) $2,000
D) $2,676

Correct Answer:

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