Multiple Choice
A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $100, what is its horizon value (PV looking forward from year 4) if the company cost of capital is 8 percent?
A) $0
B) $1,672
C) $2,000
D) $2,676
Correct Answer:
Verified
Correct Answer:
Verified
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