An analyst gathered the following information regarding Darius Investments: Current year FCFF = $5.2 million...
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Accounting
An analyst gathered the following information regarding Darius Investments:
Current year FCFF = $5.2 million
Expected growth rate in FCFF for the next three years = 14%
Long-term constant growth rate from Year 4 onward = 6%
WACC during the high-growth phase = 18%
WACC during the mature phase = 11%
The value of the firm today is closest to:
Select one:
a. $114 million
b. $56 million
c. $136 million
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