What is the firm total corporate value in millions

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Reference no: EM131333844

A) Tom company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 8% forever. If the firm's required return (rs) is 11%, what is its current stock price?

B) BBB Inc's the free cash flows (in millions) shown below. The weighted average cost of capital is 10.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value, in millions?

Year 1 2 3

FCF -$15.0 $10.0 $40.0

Reference no: EM131333844

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