Question
A company forecasts free cash flow next year to be $4 million, $8 million in two years, and $12 million in 3 years. Thereafter, free
A company forecasts free cash flow next year to be $4 million, $8 million in two years, and $12 million in 3 years. Thereafter, free cash flow is projected to grow at a constant rate of 3% per year forever. If the overall cost of capital is 15%, what is the current value of operations, to the nearest million?
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
