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nursecupcake nursecupcake
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A year ago
Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (do not make any half-year adjustments).

Year:12
Free cash flow:–$50$100


▸

$1,456



▸

$1,529



▸

$1,606



▸

$1,686

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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Tram N.Tram N.
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A year ago
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A year ago
Correct Slight Smile TY
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