Walters inc. has an anticipated next-year free cash flow (FCF) of $10 million. This cash flow is
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Question:
Walters inc. has an anticipated next-year free cash flow (FCF) of $10 million. This cash flow is anticipated to grow at an annual rate of 5%.
a. if the FCFs occur year-end and the WACC of Walters is 15%, what is the enterprise value of the company?
b. How would your answer change if the cash flows occur in mid-year?
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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