Question
1)A company forecasts free cash flow of $70 million in five years.It expects the free cash flow to grow at a constant rate of 7
1)A company forecasts free cash flow of $70 million in five years.It expects the free cash flow to grow at a constant rate of 7 percent thereafter. If the weighted average cost of capital is 12 percent, what is the horizon value, to the nearest million?(hint: the horizon value will not be a present value today, but a value four years from now)
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
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