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Mathematics, 25.11.2020 02:00 alexamorantess

Misra Inc. forecasts a free cash flow of $80 million in Year 3, i. e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 15.0%, then what is the horizon, or continuing, value in millions at t = 3?

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Misra Inc. forecasts a free cash flow of $80 million in Year 3, i. e., at t = 3, and it expects FCF...
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