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Question (Category: homework category)
simonyan inc. forecasts a free cash flow of $40 million in year 3, i.e., at t = 3, and it expects fcf to grow at a constant rate of 5% thereafter. if the weighted average cost of capital is 10% and the cost of equity is 15%, what is the horizon value, in millions at t = 3? a) $840 b) $882 c) $926 d) $972 e) $1,021

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