Use the information for the question(s)below.
You expect CCM Corporation to generate the following free cash flows over the next five years: Following year five,you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted average cost of capital is 13%.
-The enterprise value of CCM corporation is closest to:
A)$396 million.
B)$290 million.
C)$382 million.
D)$350 million.

Question

Use the information for the question(s)below.
You expect CCM Corporation to generate the following free cash flows over the next five years:  Following year five,you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted average cost of capital is 13%.
-The enterprise value of CCM corporation is closest to:
A)$396 million. 
B)$290 million. 
C)$382 million. 
D)$350 million.

Quizplus · Accepted Answer

The enterprise value is calculated by adding market capitalization, debt, and subtracting cash. The given options suggest that $396 million is the closest value based on the provided financial data.

Use the Information for the Question(s)below