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Free Cash Flows (In Millions) Shown Below Are Forecast by Simmons

Question 11

Multiple Choice

free cash flows (in millions) shown below are forecast by Simmons IncIf the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions?


A) $586
B) $617
C) $648
D) $680
E) $714

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