Horizon value of company =VCompanysoperationsatt=N= PVof expected future free cash flows =WACCgPCFFCFN+1 Market value of company = Market value of company's operations + Market value of company's nono =(1+WACC)1FCF1+(1+WACC)2FCF2++(1+WACC)FCF+Marketvalueofcompanysn1 4 Suppose your company's WACC=13% and you know that the free cash flow of your company next year is going to be FCF1=$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