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What is the terminal value of the business

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Reference no: EM132588791

Free Cash Flow               100

Growth rate                      2%

Tax Rate                           1%

Cost of Capital                   5%

Debt-to-total value                50%

Question 1: Given the data in the above table, what is the terminal value of the business (using the growing perpetuity formula)?

Option 1: Review Later

Option 2: 3400

Option 3: 3366

Option 4: 3000

Option 5: 3600

Reference no: EM132588791

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