Question
Q 20 Given the cash flows for Company below, calculate the Present Value of the Business (total value of the firm) when r = 13%
Q 20
Given the cash flows for Company below, calculate the Present Value of the Business (total value of the firm) when
r = 13% and g = 5%. Assume horizon value is at year=7.
| Company XYZ |
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| yr 1 | yr 2 | yr 3 | yr 4 | yr 5 | yr 6 | yr 7 | yr 8 |
| Free Cash Flow (FCF) | 0.5 | 0.6 | 0.8 | 1.1 | 1.3 | 1.5 | 1.8 | 2.00 |
| $22.50 | ||
| $14.37
| ||
| $12.56 | ||
| $10.81 | ||
| $16.72
|
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Competing On Analytics The New Science Of Winning
Authors: Thomas H Davenport, Jeanne G Harris, Gary Loveman
1st Edition
1422103323, 9781422103326
