Multiple Choice
free cash flows (in millions) shown below are forecast by Parker & Sons If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments) .
A) $1,456
B) $1,529
C) $1,606
D) $1,686
E) $1,770
Correct Answer:
Verified
Correct Answer:
Verified
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