Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Suppose Boyson Corporation's projected free cash flow for next year
is FCF1 = $150,000, and FCF is expected to grow at a constant rate
of 6.5%.
If the company's weighted average cost of capital is 11.5%, what is
the firm's total corporate value?
a. $3,150,000
b. $2,850,000
c. $2,707,500
d. $2,572,125
e. $3,000,000
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Transcribed Image Text:Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constant rate of 6.5%. If the company's weighted average cost of capital is 11.5%, what is the firm's total corporate value? a. $3,150,000 b. $2,850,000 c. $2,707,500 d. $2,572,125 e. $3,000,000
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Financial Management: Theory & Practice
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ISBN:9781337909730
Author:Brigham
Publisher:Cengage