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  3. a company forecasts its free cash flows (in millio

A company forecasts its free cash flows (in millions) as shown below. If the companys...

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Finance

A company forecasts its free cash flows (in millions) as shown below. If the companys weighted average cost of capital is 10% and the free cash flows are expected to grow at a rate of 3% after Year 2, what is the companys total corporate value, in millions?

Year

1

2

Free cash flow

-$50

$100

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