Question
Cash flow projections 20X0 20X1 20X2 20X3 20X4 $300 $1,448 $965 $808 $1,948 Beta 1.28 Cost of debt 4% Market equity risk premium 5% E/V
Cash flow projections
20X0 20X1 20X2 20X3 20X4
$300$1,448 $965 $808 $1,948
Beta 1.28
Cost of debt 4%
Market equity risk premium 5%
E/V 80.00%
D/V 20.00%
Risk-free rate 3.00%
Tax rate 40%
Terminal value* $41,335
Terminal date 20X4
Free cash flow projection
20X0 20X1 20X2 20X3 20X4
Free cash flow
Present value of FCF
Sum of FCF PV
Terminal value
Present value of terminal value
Cash
Total value of PDI
Question : Calculate discounted cash flow value for the company
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
