Justus Motor Co

question 83

Multiple Choice

Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million.Justus's free cash flow is expected to grow at a constant rate of 7.00%.What was the last free cash flow, FCF₀ in millions?

• A) $0.95
• B) $1.05
• C) $1.16
• D) $1.27
• E) $1.40

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Definitions:

Community Property

In certain states, all property acquired during a marriage, except for inheritances or gifts received during the marriage by either marital partner. Each spouse has a one-half ownership interest in community property.

Joint Tenancy

The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenant or tenants.

Community Property

A legal regime in some jurisdictions under which property acquired during marriage is owned jointly by both spouses, excluding personal gifts and inheritances.

Tenancy In Common

Tenancy in common refers to a form of ownership where two or more individuals share ownership rights of property, with each tenant having an undivided interest in the property.