Question: please help solve Consider a firm whose enterprise value is $20 million. This enterprise value indicates the present value of all future cash flows of
please help solve
Consider a firm whose enterprise value is $20 million. This enterprise value indicates the present value of all future cash flows of the firm. The first cash flow is $4 million one year from now, and the subsequent cash flow will grow every year at 2% per year. What is the interest rate implied by the enterprise value? 16.0%18.0%20.0%22.0%
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