Compute the Value of a Firm with Free Cash Flows

question 79

Multiple Choice

Compute the value of a firm with free cash flows of $9,000, $7,000, and $5,000 over the next three years, a terminal firm value of $30,000 after three years, and the unlevered cost of capital is 10%. Assume that the interest rate tax shield is zero.

• A) $36,109
• B) $37,098
• C) $38,745
• D) $40,263

---

Definitions:

Malfunctioning Heating Pad

A heating pad that is not operating as intended, potentially not providing heat or operating unsafely.

Headaches

A common condition that involves pain or discomfort in the head, scalp, or neck.

Dizziness

A sensation of spinning or a feeling of imbalance, often related to disorders of the inner ear or the vestibular system.

Belt-Positioning Booster

A car safety seat designed for older children, which raises the child to ensure the car's seat belt fits properly across their body.