Judd Corporation Has a Weighted Average Cost of Capital of 10.25

question 89

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

---

Definitions:

Treaty of Paris (1763)

This treaty ended the French and Indian War/Seven Years' War between Great Britain and France, resulting in France ceding Canada and land east of the Mississippi River to Britain.

Seven Years' War

A global conflict fought between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, South America, Africa, and Asia.

Consent of the People

Refers to the idea that a government's legitimacy and moral right to use state power is only justified and lawful when consented to by the people or society over which that political power is exercised.

Common Sense

A pamphlet written by Thomas Paine in 1776 advocating for American independence from Britain through plain and persuasive arguments.