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Rayco Corporations free cash flow in 2019 is $24 million. This is expected to grow by 6% for the next three years. Thereafter, it grows
- Rayco Corporations free cash flow in 2019 is $24 million. This is expected to grow by 6% for the next three years. Thereafter, it grows by 2% each year forever. The market value of debt outstanding is $17 million, and weighted average cost of capital is 15%.
- Determine the terminal value of the firm.
- What model would you use to value the firm?
- Determine the value of the firm, and the value of equity.
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
