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What is the value of the firm today

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Reference no: EM133207226

The following are the projected cash flows to the firm over the next five years: 

Year

Cash Flows to the Firm  (Million) 

1

$120

2

$145

3

$176

4

$199

5

$245

The firm has a cost of capital (WACC )of 12% and the cash flows are expected to grow at the rate of 4% in perpetuity? 

a) What is the value of the firm today?

b) At what growth rate will the firm have a value of $3000 Million?

Reference no: EM133207226

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