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Kriya Company

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Given the following data for Kriya Company:
Year: 1 2 3 4
Free Cash Flow in millions: 4 5 6 6.24
A constant growth rate of 4% is sustained forever after year 3. The weighted average cost of
capital is 10%. What is the value of the firm?

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Solution Summary

The expert examines Kriya Company's free cash flow.

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PV of growing cash flows = C/(R - G) , where C = Cash Flow in Year 1, G = growth Rate and R = cost of ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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