) Suppose a company’s current free cash flow (i.e. FCF 0 ) is $100 million and is expected to grow at a constant rate of 5 percent. If the company’s overall cost of capital is 15 percent, what is the...

) Suppose a company’s current free cash flow (i.e. FCF₀) is $100 million and is expected to grow at a constant rate of 5 percent. If the company’s overall cost of capital is 15 percent, what is the current value of operations?

1. $ 913 million


2. $1,000 million


3. $1,050 million


4. $1,500 million


5. $2,000 million