Judd Corporation has a weighted average cost of capital of 10.25%, and its value of operations is $57.50 million. Free cash flow is expected to grow at a constant rate of 6.00% per year. What is the expected year-end free cash flow, FCF1 in millions?
A. $2.20
B. $2.44
C. $2.69
D. $2.96
E. $3.25
Answer: B
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