The FCF of a firm expected to grow at compound annual rate of 35% for next 5 years. then, growth expected to come down to normal 5% annual rate. current year cash flow 400,000. cost of capital in high growth time is 18% and then 12% after 5 years. value of the firm?
a) 11,750,000 b) 3,050,000 c) 14,808,000 d) 1,883,000
Is the answer C?