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A research analyst has estimated the following data for DEF Company: Free cashflow for year 1-4 (in millions) Year 1 25 2 30 3

A research analyst has estimated the following data for DEF Company: Free cashflow for year 1-4 (in millions) Year 1 25 2 30 3 47 50 Assume that free cash flow grows at an annual rate of 3% after year 4. The weighted average cost of capital is 8%. If you calculate the horizon value at the end of year 4, what is the present value of the horizon value?

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