Question
Gere Furniture forecasts free cash flows of $40 million in Year 1 and $20 million in year 2, and it expects FCF to grow at
Gere Furniture forecasts free cash flows of $40 million in Year 1 and $20 million in year 2, and it expects FCF to grow at a constant rate of 5% thereafter. If the weighted average cost of capital is 10% and the cost of equity is 15%, what is the current value of operations?
A $226.45 million
B $257.85 million
C $209.50 million
D $215.70 million
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Financial Management In The Sport Industry
Authors: Brown T Matthew
2nd Edition
041579000X, 9780415790000
