Question
Giventhe following: A firms projected free cash flows of 2021$20 million 2022$30 million 2023$50 million After 2023, the growth rate will be steady at 4%
Giventhe following:
A firms projected free cash flows of
2021$20 million
2022$30 million
2023$50 million
After 2023, the growth rate will be steady at 4%
Cost of capital (WACC) = 8%
Value of marketable securities = $20 million
Value of long term debt=$12 million
10 million shares outstanding
calculate:
a.the horizon value
b.the Value of operations
c.the stock price
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
