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A 1 Question: Suppose Boyson Inc.'s free cash flow for next year is FCF1 = $150,000, and FCF is expected to 2 grow at a constant rate of 6.5%. If WACC Is 11.5%, what is Its total corporate value? 3 a. $2,707,500 4 b. $3,195,000 5 c. $2,572,125 6 d. $2,816,901 7 8 e. $3,000,000 9 10 11 12 13 14

A 1 Question: Suppose Boyson Inc.'s free cash flow for next year is FCF1 = $150,000, and FCF is expected to 2 grow at a constant rate of 6.5%. If WACC Is 11.5%, what is Its total corporate value? 3 a. $2,707,500 4 b. $3,195,000 5 c. $2,572,125 6 d. $2,816,901 7 8 e. $3,000,000 9 10 11 12 13 14

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A 1 Question: Suppose Boyson Inc.'s free cash flow for next year is FCF1 = $150,000, and FCF is expected to 2 grow at a constant rate of 6.5%. If WACC Is 11.5%, what is Its total corporate value? 3 a. $2,707,500 4 b. $3,195,000 5 c. $2,572,125 6 d. $2,816,901 7 8 e. $3,000,000 9 10 11 12 13 14
Transcribed Image Text:A 1 Question: Suppose Boyson Inc.'s free cash flow for next year is FCF1 = $150,000, and FCF is expected to 2 grow at a constant rate of 6.5%. If WACC Is 11.5%, what is Its total corporate value? 3 a. $2,707,500 4 b. $3,195,000 5 c. $2,572,125 6 d. $2,816,901 7 8 e. $3,000,000 9 10 11 12 13 14
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