Question
Suppose Firm X expects to have Free Cash Flow of 150K per year in each of the next 5 years. Thereafter, they expect that their
Suppose Firm X expects to have Free Cash Flow of 150K per year in each of the next 5 years. Thereafter, they expect that their Free Cash flow will grow at 2% per year. The appropriate discount rate for Firm X is 6%. What is the value of Firm X to the capital market?
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
