CBC Inc. uses the discounted cash flow method to estimate its value. It forecasts the free cash flows (FCFs) to be $100 at the end
CBC Inc. uses the discounted cash flow method to estimate its value. It forecasts the free cash flows (FCFs) to be $100 at the end of Year 1, $150 at the end of Year 2, $200 at the end of Year 3, $250 at the end of Year 4, and then the FCFs will grow at a constant rate of 8% for ever. With a WACC of 15%, what should be the firm's value (i.e. the PV of FCFs)?
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Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
