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Problem:

Young & Liu Inc.'s free cash flow during the just-ended yearwas $100 million, and FCF is expected to grow at a constant rate of 5% in the future.

Required:

Question: If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions?

Note: Provide support for rationale.

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  • Category:- Accounting Basics
  • Reference No.:- M91169542

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