Question
Find the current value of operation using the Horizon Value Formula. Year 1 FCF= -$10 million Year 2 FCF= $20 million Year 3 FCF= $35
Find the current value of operation using the Horizon Value Formula.
Year 1 FCF= -$10 million
Year 2 FCF= $20 million
Year 3 FCF= $35 million
FCF grows at constant rate of 5% after year 3.
WACC= 11%
marketable securities= $100 million
Debt= $200 million
Preferred stock= $50 million
number of shares = 10 million
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. FinklerDaniel L. Smith, Thad D. Calabrese
6th Edition
978-1506396811, 150639681X
