Question
Ocean & Desert Industries has the following data. The discount rate is 12%. Terminal value is 3 times the 2013 FCF. Cash and debt are
Ocean & Desert Industries has the following data. The discount rate is 12%. Terminal value is 3 times the 2013 FCF. Cash and debt are constant. Debt refers to interest-bearing liabilities. Calculate the 2010 equity value.Round your answer to the nearest dollar.
2010 2011 2012 2013
historical forecast forecast forecast
Free Cash Flow 107 123 132
Cash 42
Debt 212
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
