Question: Use this information for # 1 4 and # 1 5 . The free cash flow of a company is $ 1 0 right now.

Use this information for #14 and #15. The free cash flow of a company is $10 right now. It is expected to grow by 5% for 2 years and then 8% forever after. The market discount rate is 10%
14) What is the value of this firm if it only exists for the next two years?
a) $17.77
b) $18.66
c) $27.77
d) $28.66
15) What is the value of this firm if it exists forever?
a) $510.68
b) $614.01
c) $620.18
d) $715.43

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