Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is

Question:

Suppose Boyson Corporation's projected for next year is FCF1 = $150,000, and FCF is expected to grow at a constant rate of 6.5%. If the company's weighted average is 11.5%, what is the firm's total corporate value?
a. $3,150,000
b. $2,850,000
c. $2,707,500
d. $2,572,125
e. $3,000,000
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...