Question: ( 2 points ) A firm has debt valued at $ 3 million, and $ 0 . 5 million in operating cash with no excess

(2 points) A firm has debt valued at $3 million, and $0.5 million in operating cash with no excess cash. The equity holders will receive dividends of $0.1 million next year, and this amount will grow by 4% in perpetuity. If the discount rate for the equity is 20%, what is the enterprise value of the firm?
A) $0.625M
B) $3.125M
C.) $3.625M
D) $4.125M
( 2 points ) A firm has debt valued at $ 3

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