The future CCF’s of Holmes & Watson, Inc. are expected to be $85 in year 1, $92 in year 2 and $96 in year 3. The estimated terminal value is $3,200, the firm’s cost of unlevered equity 11% and its after-tax WACC 10%. What is the value of Holmes & Watson?
$1,820
$2,133
$2,352
$2,561
$2,630