Question: Please reply me your fast answer QUESTION 18 Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $150,000

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QUESTION 18

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $150,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 5%. The company's weighted average cost of capital is 15%.What is the value of Kendra's operations?

  1. $2,700,000
  2. $1,575,000
  3. $2,303,571
  4. $1,725,000
  5. $1,373,913

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