Judd Corporation Has a Weighted Average Cost of Capital of 10.25

question 18

Multiple Choice

Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million.Free cash flow is expected to grow at a constant rate of 6.00% per year.What is the expected year-end free cash flow, FCF₁ in millions?

• A) $2.20
• B) $2.44
• C) $2.69
• D) $2.96
• E) $3.25