Question: Given free cash flow forecasts for the next four years are $50,000, $90,000, $70,000, and $100,000 and there is a terminal value of $800,000. If
Given free cash flow forecasts for the next four years are $50,000, $90,000, $70,000, and $100,000 and there is a terminal value of $800,000.
If the weighted average cost of capital is 12%, what is the value of the firm, using the absolute valuation method if the terminal value of the firm (at the end of four years from today) is estimated to be ____
A.) $698,234
B.) $758,172
C.) $738,181
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