Misra Inc. forecasts a free cash flow of $80 million in Year 3, i. e., at t = 3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 15.0%, then what is the horizon, or continuing, value in millions at t = 3?

step-by-step explanation:

(s)he  is right it would be 5.5% because it is smaller than 15.5% or anything smaller than 15.5% in general

ou would have 12 of each

hi there!

question 1 answer: p/q can be terminating when q = 5^m * 2^n

question 2 answer: -1 and -1

question 3 answer: -4

question 4 answer: 5/12

hope this : )