Question
Stock Valuation: A company has a four year FCF forecast as shown below. After year 4, FCF is expected to grow by 5% per year,
Stock Valuation:
A company has a four year FCF forecast as shown below. After year 4, FCF is expected to grow by 5% per year, forever. The WACC is 8%. What is the Value of Operations? SHOW EQUATIONS
| year | 1 | 2 | 3 | 4 |
| FCF | -4 | -6 | 10 | 20 |
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
11th Edition
012819782X, 978-0128197820
