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A Company Forecasts Growth of 6% for the Next Five

Question 49

Multiple Choice

A company forecasts growth of 6% for the next five years and 3% thereafter.Given last year's free cash flow was $100,what is its 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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