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1)A company forecasts the following free cash flows (shown in millions of dollars).If the weighted average cost of capital is 13 percent and the free
1)A company forecasts the following free cash flows (shown in millions of dollars).If the weighted average cost of capital is 13 percent and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, to the nearest million?(hint: you will need to solve for g by calculating the FCF growth rate from year 2 to year 3)
Year:123
Free cash flow:-$20 $40$43
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