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Use the information for the question(s) below.
You expect CCM Corporation to generate the following free cash flows over the next five years: Following year five,you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted average cost of capital is 13%.
-The enterprise value of CCM corporation is closest to:
Systematic Risk
The risk inherent to the entire market or market segment, also known as market risk, which cannot be avoided through diversification.
Asset-specific Risk
The risk that affects the value of a particular asset, such as changes in its market or sector, distinct from market-wide risk.
Unsystematic Risk
The risk associated with an individual asset or investment, distinct from market-wide risks.
Risk-free Rate of Return
The theoretical return on an investment with zero risk, typically based on government bonds.
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