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Ater year 2 fcf is expected to grow at a constant rate of

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Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = -10 million, but it expects positive numbers thereafter, with FCF2= $14 million. After year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14.0%, what is the firm's value of operations, in millions?

Reference no: EM13569498

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