Assuming that the growth is expected to remain constant in


H and L Inc. forecasts the free cash flow of $15 million today. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the growth is expected to remain constant in Year 3 and beyond, what is the value of operations, in millions?

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Financial Management: Assuming that the growth is expected to remain constant in
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