Question: Use the following information to answer the question below. Next Year's Expected Free Expected Growth Division of Company Asset Beta Cash Flow ($m) Rate AAA

Use the following information to answer the question below. Next Year's

Use the following information to answer the question below. Next Year's Expected Free Expected Growth Division of Company Asset Beta Cash Flow ($m) Rate AAA 1.5 300 3.00% BBB 1.2 400 4.00% CCC 0.7 500 2.00% The risk-free rate of interest is 4% and the market risk premium is 6%. The value of the BBB (in $ million) is closest to: O A $8065. O B. $4918. OC. $3000. O D. $5556. O E. $6810

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