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The Value of the Firm's Operations: Required Rate of Return

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Fiedler Roofing, Inc. had a free cash flow of $275,000 last year. The firm is expected to grow at a 4% rate indefinitely is in the 20% tax bracket and investors have a 9% required rate of return. What is the value of the firm's operations?

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Solution Summary

The solution computes value of the firm's operations for Fielder Roofing.

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