Question
Akyol Corporation is undergoing a restructuring and it free cash flows are expected to be unstable during the next few years. However , FCF is
Akyol Corporation is undergoing a restructuring and it free cash flows are expected to be unstable during the next few years. However , FCF is expected to be $50 million in Year 4 , i.e , FCF at t =4 $50 million , and the FCF growth rate is expected to be constant at 6% beyond that point. If the weighted average cost of capital is 12%.
What is the horizon value (in millions) at t =4?
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Managerial Accounting
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips
1st Edition
0078110777, 9780078110771
