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Problem 7-7 Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below. Actual 2016 2017 Projected
Problem 7-7 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 | $600.64 | $661.32 | $701.37 | $757.48 |
| (millions of dollars) |
Growth is expected to be constant after 2015, and the weighted average cost of capital is 10.95%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places. $________________?
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