Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to

Question:

Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2017. The weighted average cost of capital is 8%. What is the horizon, or continuing, value at 2017?

Projected Actual 2015 2018 2016 2017 Free cash flow (millions of dollars) $606.82 $667.50 $707.55 $750.00

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...

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