Question: Need solution for this practice test. Use this information for #14 and #15. The free cash flow of a company is $10 right now, It

Need solution for this practice test.

Need solution for this practice test. Use this
Use this information for #14 and #15. The free cash flow of a company is $10 right now, It is expected to grow by 5% for 2 years and then 8% forever after. The market discount rate is 10% 14) What is the value of this firm if it only exists for the next two years? g = 5% i= 10% a) $17.77 b) $18.66 $ 10 (1 +0 .05) C) $27.77 10.5 $28.66 15 ) What is the value of this firm if it exists forever? a) $510.68 b ) $614.01 C) $620.18 $715.43

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