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Calculate the present value or total value of the firm when r = 10% and g = 5%. Assume horizon value is at year 7
Calculate the present value or total value of the firm when r = 10% and g = 5%. Assume horizon value is at year 7
Free cash flow:
Year 1: 0.5
Year 2: 0.6
Year 3: 0.8
Year 4: 1.1
Year 5: 1.3
Year 6: 1.5
Year 7: 1.8
Year 8: 2.0
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