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Problem 7-07 Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Problem 7-07 Horizon Value

Problem 7-07

Horizon Value of Free Cash Flows

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

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Problem 7-07 Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2016 2017 2018 2019 Free cash flow $612.64 $673.32 $713.37 $763.31 (millions of dollars) Growth is expected to be constant after 2018, and the weighted average cost of capital is 10%. What is the horizon (continuing) value at 2019 if growth from 2018 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places

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