Question
ABC Corphas been determined to be coming out of a growth phase and will be entering a mature profitable period for the foreseeable future. You
ABC Corphas been determined to be coming out of a growth phase and will be entering a mature profitable period for the foreseeable future. You have analyzed their financial statements and have determined they will have 3 distinct periods coming up. What is the firm's value, given the following?
# Years FCF WACC g
Period 1 2 $45 million 14.5% 12.0%
Period 2 3 $56.5 million 13.5% 8.0%
Period 3 perpetuity $65.9 million 12.5% 6.0%
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
