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Assuming the year 5 free cash flow amount is expected to

3A firm has the projected cash flows as indicated below
year Cash flows
0 25
1 30
2 33
3 35
4 37
5 38

A. Assuming the Year 5 free cash flow amount is expected to grow at 3% annually indefinitely and the firm has a Weighted Average Cost of Capital (WACC) of 9.8% calculate the firm value.

b. If the market value of the debt is $170 million what is the value of equity?"

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