Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $603.880 | $664.560 | $704.607 | $746.880 |
(millions of dollars) |
Growth is expected to be constant after 2021, and the weighted average cost of capital is 10.55%. 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started