Suppose Buyson Corporation’s projected free cash flow for next year is FCF1 = P150,000, and FCF is expected to grow at a constant rate of 6.5%. If the company’s weighted average cost of capital is 11.5%, what is the firm’s total corporate value? Group of answer choices P3,150,000 P2,572,125P2,707,500 P2,850,000 P3,000,000

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
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65.)

Suppose Buyson Corporation’s projected free cash flow for next year is FCF1 = P150,000, and FCF is expected to grow at a constant rate of 6.5%.  If the company’s weighted average cost of capital is 11.5%, what is the firm’s total corporate value?
Group of answer choices

P3,150,000

P2,572,125P2,707,500

P2,850,000

P3,000,000

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