An analyst is evaluating a company by using a three-stage FCFF growth model. The analyst has gathered the following information: - Current FCFF: $400 million - Growth rate of FCFF in stage 1, Year 1–2: 15% - Growth rate of FCFF in stage 2, Year 3–4: 10% - Growth rate of FCFF in stage 3, Year 5 and thereafter: 4% - WACC: 10% - Required return for equity: 12% The total value of the company is closest to: | Chartered Financial Analyst Level 2 Quiz