Estimated terminal value

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The future CCF’s of Holmes & Watson, Inc. are expected to be $85 in year 1, $92 in year 2 and $96 in year 3. The estimated terminal value is $3,200, the firm’s cost of unlevered equity 11% and its after-tax WACC 10%. What is the value of Holmes & Watson?

$1,820

$2,133

$2,352

$2,561

$2,630

Reference no: EM131350932

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