Gere furniture forecasts a free cash flow of 40 million in


Gere Furniture forecasts a free cash flow of $40 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5% thereafter. If the weighted average cost of capital is 10% and the cost of equity is 15%, what is the horizon value, in millions at t = 3?

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Finance Basics: Gere furniture forecasts a free cash flow of 40 million in
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