Question
A firm is projected to have its free cash flow grow at a steady rate of 5% for the next 10 years. After year 10,
A firm is projected to have its free cash flow grow at a steady rate of 5% for the next 10 years. After year 10, the growth rate will drop to 1% and will continue at that rate in perpetuity. The free cash flow in year 1 is expected to be $700 million. Given WACC of 11%, find Terminal Cash Flow as of t=10.
| a. | 11,402.26 | |
| b. | 10,859.30 | |
| c. | 19,003.77 | |
| d. | 10,967.90 |
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
13th Edition
0073524719, 9780073524719
