The projected cash flow for the next year for minesuah inc. is $100,000, and fcf is expected to grow at a constant rate of 6%. if the company's weighted average cost of capital is 11%, what is the value of its operations? a. $1,714,750b. $1,805,000c. $1,900,000d. $2,000,000e. $2,100,000

d. $2,000,000

Explanation:

The computation of the value of its operation is shown below:

= Projected cash flow for the next year ÷ (Weighted average cost of capital - Growth Rate)

= $100,000 ÷ (11% - 6%)

= $100,000 ÷ 5%

= $2,000,000

We simply take the next year projected cash flow and divide it by taking the difference between the weighted average cost of capital and the growth rate

because she sucked. : )

(but so does trump, don't @ me)