Multiple Choice
Kedia Inc.forecasts a negative free cash flow for the coming year,FCF1 = −$10 million,but it expects positive numbers thereafter,with FCF2 = $25 million.After Year 2,FCF is expected to grow at a constant rate of 4% forever.If the weighted average cost of capital is 14.0%,what is the firm's total corporate value,in millions?
A) $200.00
B) $210.53
C) $221.05
D) $232.11
E) $243.71
Correct Answer:
Verified
Correct Answer:
Verified
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