Question
Shaq Fu Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF
Shaq Fu Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 7.00% rate. Shaq Fus cost of capital is 12.00%. Shaq Fu has 8.00 million shares outstanding, and carries 112.00 million in debt.
| YEAR | 1 | 2 | 3 |
|---|---|---|---|
| FCF | -$29.00 | $40.00 | $36.00 |
(All Free cash flows above are expressed in millions of dollars)
What is the value of the firm today? (in millions)
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
