Question
1. You are evaluating a project for a local private equity fund, and they have provided the data below. Considering that the value of
1. You are evaluating a project for a local private equity fund, and they have provided the data below. Considering that the value of a firm can be calculated as the sum of a series of cash flows over time, as shown in the following formula. CFA CFA CFA CFA + V Vo = + + + + 1+ WACC (1 + WACC) (1 + WACC) 1+ WACC Where: V CFA+1 WACC-g Remember, CFA is often called "free cash flow" or FCF. And: WACC 11.33% FCFO (mn $) $117 g1 5.10% 92 7.90% g3 (and beyond) 3.80% What is the value of the company under analysis?
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Get StartedRecommended Textbook for
Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
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