Question
Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2019 2020 2021 2022
Horizon Value of Free Cash Flows
Current and projected free cash flows for Radell Global Operations are shown below.
| Actual | Projected | |||
| 2019 | 2020 | 2021 | 2022 | |
| Free cash flow | $609.100 | $669.780 | $709.827 | $758.920 |
| (millions of dollars) | ||||
Growth is expected to be constant after 2021, and the weighted average cost of capital is 10.2%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
$ million
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
