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
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 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?
- $2,700,000
- $1,575,000
- $2,303,571
- $1,725,000
- $1,373,913
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