You expect CCM Corporation to generate the following free cash flows over the next five years: Year

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Question:

You expect CCM Corporation to generate the following free cash flows over the next five years:
Year 1 2 3 4 5
FCF ($ millions) 25 28 32 37 40
Following year five, you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted
average cost of capital is 13%.
1) The enterprise value of CCM corporation is closest to:
A) $350 million
B) $382 million
C) $290 million
D) $396 million