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Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash flows...

Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant 3% rate after Year 3. Year 1 Year 2 Year 3 FCF $715 $750 $805

a. What is the horizon value of the unlevered operations?

b. What is the total value of unlevered operations at Year 0?

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jeff jeffy answered 3 months ago
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