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Question 18 8 pts Expo Corporation is planning to purchase Simplicity Corporation. Simplicity's recent annual...

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Question 18 8 pts Expo Corporation is planning to purchase Simplicity Corporation. Simplicity's recent annual free cash flow (time 0) was $7 million. These free cash flows are expected to grow at 9 percent for the next 4 years, before leveling off to a growth rate of 4 percent for the foreseeable future. Both firms have a cost of capital of 10%. Simplicity has 5 million shares of stock. Calculate the value of Simplicity. C$134.5 million $206.2 million C$196.3 million $144.4 million $181.2 million

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