Normaltown Corporation An Analyst Has Predicted the Free Cash Flows for Normaltown

question 19

Multiple Choice

Normaltown Corporation
An analyst has predicted the free cash flows for Normaltown Corporation for the next four years:

-After 2007,the free cash flows are expected to grow at an annual rate of 5%.If the weighted average cost of capital is 12% for Normaltown,find the enterprise value of the firm.

• A) $54.98 million
• B) $301.81 million
• C) $313.00 million
• D) $331.43 million

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