eBook

Constant FCF Growth Valuation

Brook Corporation's free cash flow for the current year $($FCF$0)$ was $$3\mathrm{.}00$ million. Its investors require a $14\%$ rate of return on Brooks Corporation stock $($WACC $=14\%).$ What is the estimated value of the value of operations if investors expect FCF to grow at a constant annual rate of $(1)-7\%,(2)0\%,(3)6\%,$ or $(4)13\%?$ Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $$1$ million should be entered as $1,$ not $1,000,000.$ Round your answers to two decimal places.

$

million

$

million

$

million

$

million