Multiple Choice
Misra Inc.forecasts a free cash flow of $55 million in Year 3,i.e. ,at t = 3,and it expects FCF to grow at a constant rate of 5.5% thereafter.If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 15.0%,then what is the horizon,or continuing,value in millions at t = 3?
A) $1,289
B) $1,148
C) $1,212
D) $1,186
E) $1,083
Correct Answer:
Verified
Correct Answer:
Verified
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