Assume the following free cash flows for Fischer Inc. for 2013 and forecasted FCFF for 2014 onward:
|
Current
|
Forecast Horizon
|
Terminal
|
|
($ millions)
|
2013
|
2014
|
2015
|
2016
|
2017
|
Year
|
|
Free cash flows to the firm (FCFF)
|
$7,327
|
$7,598
|
$8,004
|
$8,725
|
$9,480
|
$9,764
|
The DCF value of the firm using the FCFF information above, a discount rate of 7%, and an expected terminal growth rate of 2.5%, is:
Select one:
A. $193,978 million
B. $183,149 million
C. $ 50,898 million
D. $ 42,141 million