Question: - eBook Problem Walk-Through Problem 7-17 Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and

- eBook Problem Walk-Through Problem 7-17 Value of Operations Kendra Enterprises

- eBook Problem Walk-Through Problem 7-17 Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next years, respectively, after the second year For is expected to grow at a constant rate of 9%. The company's weighted average cost of capital is 13%. a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest b. Calculate the value of Kendra's operations. Round your answer to the nearest cent. Do not round intermediate calculations

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