Question
A company is projected to generate free cash flows of $129 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the
A company is projected to generate free cash flows of $129 million per year for the next 3 years (FCFF1, FCFF2 and FCFF3). Thereafter, the cash flows are expected to grow at a 2.6% rate in perpetuity. The company's cost of capital is 8.4%. What is your estimate for its enterprise value? Answer in millions, rounded to one decimal place (e.g., $213,456,789 = 213.5).
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
