Question
A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 15%, and the FCFs are expected to
A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 15%, and the FCFs are expected to continue growing at a 4% rate after Year 3. What is the Year 0 value of operations, in millions?
| Year: | 1 | 2 | 3 |
| Free cash flow: | -$12 | $15 | $22 |
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Finance And Occupational Pensions
Authors: Charles Sutcliffe
1st Edition
1349948624, 978-1349948628
