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1. Assume the following free cash flows for Zhang Inc. for 2011 and forecasted FCFF for 2012 onward (in millions):

	Current	Forecast Horizon	Terminal Year
($millions)	2011	2012	2013	2014	2015
Free cash flows to the firm (FCFF)	$5,138	$5,396	$5,794	$6,624	$7,290	$7,578

The DCF value of the firm using the FCFF information above, a discount rate of 8%, and an expected terminal growth rate of 3.5%, is:

$144,360 million

$135,190 million

$ 37,820 million

$ 25,738 million

None of the above

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