Question
Question 4: Current and projected free cash flows for ABC Inc. are shown here. Growth is expected to be constant after 2021, and the weighted
Question 4:
Current and projected free cash flows for ABC Inc. are shown here. Growth is expected to be constant after 2021, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant?
|
| Actual | Projected | ||
|
| 2019 | 2020 | 2021 | 2022 |
| Free cash flow (millions of dollars) | $606.820 | $667.500 | $707.547 | $750.000 |
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
7th Edition
0030333288, 9780030333286
