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Petty Corporation forecasts a negative free cash flow for the coming year, with FCF1= -$10 million, but it expects positive numbers thereafter, with FCF2= $20
Petty Corporation forecasts a negative free cash flow for the coming year, with FCF1= -$10 million, but it expects positive numbers thereafter, with FCF2= $20 million. After year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's total corporate value, in millions?
Your answer should be between 42.68 and 352.15
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