Justus Motor Co

question 11

Multiple Choice

Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow at a constant rate of 7.00%. What was the last free cash flow, FCF0 in millions?

• A) $0.95
• B) $1.05
• C) $1.16
• D) $1.27
• E) $1.40

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Definitions:

Mm Hg

Millimeters of mercury; a unit of pressure used in various applications, including the measurement of blood pressure.

Foramen Ovale

A fetal structure allowing blood flow between the right and left atria of the heart, which normally closes after birth.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body and pumps it to the right ventricle.

Left Atrium

One of the four chambers of the heart, receiving oxygenated blood from the lungs and pumping it to the left ventricle.