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Kedia Inc. forecasts a negative free cash flow for the coming year, FCF 1 = -$10 million, but it expects positive numbers thereafter, with FCF
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Kedia Inc. forecasts a negative free cash flow for the coming year, FCF 1 = -$10 million, but it expects positive numbers thereafter, with FCF 2 = $43 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14.0%, what is the firms total corporate value, in millions? Do not round intermediate calculations.
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