What enterprise value of firm if required return ten percent

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Problem 1: At the end of 2019, you forecast that free cash flow of the firm for 2020 will be $250 million. You believe the free cash flow will grow at 6% per year thereafter. What is enterprise value of the firm if the required return is 10%?

Select one:

a. $4,000 million
b. $6,250 million
c. $5,000 million
d. $1,429 million

Reference no: EM132931287

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