Problem 7-07 Horizon Value of Free Cash Flows

Current and projected free cash flows for Radell Global Operations are shown below.

	Actual 2016	2017	Projected 2018	2019
Free cash flow	$606.82	$667.50	$707.55	$750.00
(millions of dollars)

Growth is expected to be constant after 2018, and the weighted average cost of capital is 11.5%. What is the horizon (continuing) value at 2019 if growth from 2018 remains constant? Round your answer to the nearest dollar. Do not round intermediate calculations.