Here. EBFT is earnings before interest and taxes; FCF is the free cash flow gonerated in vear t before any payments are made to any investors, so it munt be used to compensate common stocholders, preferred stockholders, and bondholders, WACC is weighted average cont of all the firm's capital, such as debt, preferred stock, and common equity. Free cash flows are forecasted for 5 to 10 years, after which it is assumed that the company reaches its horizon date. That is, the final explicitly forecasted FCF will grow at some long-run constant rate, You can use the following formula to calculate the market value of the company's operations as of that date: Markat what of compuny - Market tolue of company'r operations + Market value of company's none 4 Suppose your company's WACC=13% and you know that the free canh flow of your company next year is going to be PCF1=$24.6 and then FCF is expected to grow at 8%. Then the FCF2 is and the company's horizon value in one year is - This means that the firm's value today is The following tabile shows projected free cash flows for the next four vears for Quick Sky Corpu a company producing wind turbines. Ater the four year period, Quick Shy is expected to grow at a constant rate of aNs and its wacc is 13%. Quick Sky has $15 million of debt and $2:10 million shares of stock outstanding. Quick Styr value today is million and the price per share today is