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Galaxy Corp. is expected to generate a free cash flow (FCF) of $9,390.00 million this year (FCF = $9,390.00 million), and the FCF is expected
Galaxy Corp. is expected to generate a free cash flow (FCF) of $9,390.00 million this year (FCF = $9,390.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Galaxy Corp.s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Galaxy Corp.?
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