MC Corporation’s current free cash flow is $400,000 and is expected to grow at a constant rate of 5%. The weighted average cost of capital is WACC = 12%. Calculate EMC’s estimated value of operations
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MC Corporation’s current
Data given:
Free cash flow (FCF) = $400,000
Expected growth at a constant rate (g)= 5%
WACC= 12%
Required:: Estimated value of operations
Formula to be used::
Value of operation=.
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