Question: QUESTION 11 Bell Inc. forecasts that it will have the free cash flows in millions) shown below. Assume the firm has zero non-operating assets. If

QUESTION 11 Bell Inc. forecasts that it will have the free cash flows in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3. what is the firm's total corporate value, in millions? Do not found intermediate calculations. (Hint: First, find growth rate g = FCF3/FCF2 - 1. Second, find the horizon value at Year 2 => HV2 = FCF3/(WACC-9). Then find the PV of FCF1, FCF2. and HV2 using the discount rate of 14%, and add them up to get the Corporate Value] Year 1 2 3 Free cash flow -$20.00 $48.00 $51.50 O a. 9634.52 b. $610.11 O c. $652.82 O d. 463.69 O e. $524.70
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