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South Bay Trucking Company forecasts a negative free cash flow for the coming year, FCF1= $-15M, but it expects positive numbers thereafter, with FCF2 =
South Bay Trucking Company forecasts a negative free cash flow for the coming year, FCF1= $-15M, but it expects positive numbers thereafter, with FCF2 = $20M, and a FCF3 = $40M. After year 3, FCF is expected to grow at a constant rate of 5% forever. If the weighted average cost of capital is 13%, what is the firm's corporate value, in millions?
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