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Judd Corporation Has a Weighted Average Cost of Capital of 10.25

Question 89

Multiple Choice

Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow is expected to grow at a constant rate of 6.00% per year. What is the expected year-end free cash flow, FCF1 in millions?


A) $2.20
B) $2.44
C) $2.69
D) $2.96
E) $3.25

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