Question
Richter Manufacturing has a 9% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant
Richter Manufacturing has a 9% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant 5% rate after Year 3.
Year 1 FCF 775 Year 2 FCF $815 Year 3 FCF $860
What is the horizon value of the unlevered operations? Do not round intermediate calculations. Round your answer to the nearest dollar. $
What is the total value of unlevered operations at Year 0? Do not round intermediate calculations. Round your answer to the nearest dollar. $
I found the horizon value of unlevered operations which is 22575. Having difficulty finding the second part of this question.
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Investment The Study Of An Economic Aggregate
Authors: Philip J. Lund
1st Edition
0444851380,1483256901
