Question: A company expects next year’s free cash flow to be $80,000.00 and to grow at the rate of 7% in the foreseeable future. The company estimates its cost of capital to be 13%. The estimated value of this company is?

a. _____ $13,333.333.00

b. _____ $6,153,846.00

c. _____ $11,428,571.00

d. _____ the data are insufficient to calculate an answer.