Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1 = −$10 million, but it expects
positive numbers thereafter, with FCF2 = $25 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14.0%, what is the firm’s total corporate value, in millions?
a. $200.00 b. $210.53 c. $221.05 d. $232.11 e. $243.71