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What is the fair value of the firm

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Cell Phone Corp. is a cellular firm that reported earnings before interest and after tax of $250 million for the fiscal year that just ended. Over the same period, the firm had depreciation expenses of $100 million, capital expenditures of $200 million, and net working capital increased by $10 million. The firm's opportunity cost of capital is 11% and you expect the firm's free cash flows to grow by 4% per year, forever, starting this year. What is the fair value of the firm?

Reference no: EM133074425

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