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Compute the Value of a Firm with Free Cash Flows

Question 79

Multiple Choice

Compute the value of a firm with free cash flows of $9,000, $7,000, and $5,000 over the next three years, a terminal firm value of $30,000 after three years, and the unlevered cost of capital is 10%. Assume that the interest rate tax shield is zero.


A) $36,109
B) $37,098
C) $38,745
D) $40,263

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