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Business, 19.12.2019 01:31 BABA3724

Gupta corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. however, the fcf is expected to be $65.00 million in year 5, and the fcf growth rate is expected to be a constant 6.5% beyond that point. the weighted average cost of capital is 12.0%. what is the horizon (or continuing) value (in millions) at t = 5?

a. $1,025
b. $1,259
c. $1,136
d. $1,196
e. $1,079

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