Use the Information for the Question(s)below

question 22

Multiple Choice

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:

• A)$396 million.
• B)$290 million.
• C)$382 million.
• D)$350 million.

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Definitions:

Urban Areas

Regions characterized by high population density and vast human features in comparison to areas surrounding it.

Cultural Tools

involve artifacts, symbols, and practices that a society uses to mediate thinking, communication, and understanding.

Time Orientation

The way in which individuals or cultures perceive and value time, which can affect planning, punctuality, and the emphasis on past, present, or future events.

The Present

The current moment or period in time, distinguished from the past and the future.