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Please help, thanks. Q1. a. Calculate the value of the small firm based on the following forecast free cash flows using WACC of 10%. Use
Please help, thanks.
Q1. a. Calculate the value of the small firm based on the following forecast free cash flows using WACC of 10%. Use PVIF to 4 decimal places. The growth rate after the terminal year is assumed to be 5%. The firm is financed by term loan of RM131,810. There are no non- operating assets. Present your answers logically. (16 m) Year 1 2 3 4 5 FCF RM 100,000 RM 100,000 RM 100,000 RM 80,000 RM 60,000 b. Project can last up to 50 years. So, why analyst only forecast FCF up to 5 years? (9 m)Step by Step Solution
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