(DCF of perpetuity) Walters Inc. has an anticipated next-year free cash flow (FCF) of $10 million. This...
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(DCF of perpetuity) 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 at 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?
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Related Book For 
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ISBN: 9780190296384
3rd Edition
Authors: Simon Benninga, Tal Mofkadi
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