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A company has been growing at a rate of 36% per year in recent years. This same supernormal growth rate is expected to last for
A company has been growing at a rate of 36% per year in recent years. This same supernormal growth rate is expected to last for another 5 years, during which it will not have any free cash flows(FCF). It will start to have FCF of $6 million in 6 th year. After this, earnings and FCF are expected to grow at a 5 percent annual rate indefinitely. Its weighted average cost of capital is 8 percent. What should be the current value of this company in million
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