Question
Suppose today is 12/31/2021. Some analysts have predicted that Microsofts unlevered free cash flows at 12/31/2022, 12/31/2023, 12/31/2024, 12/31/2025, 12/31/2026, and 12/31/2027 to be $2,872
Suppose today is 12/31/2021. Some analysts have predicted that Microsofts unlevered free cash flows at 12/31/2022, 12/31/2023, 12/31/2024, 12/31/2025, 12/31/2026, and 12/31/2027 to be $2,872 million, $3,054 million, $3,185 million, $3,295 million, $3,329 million, and $3,587 million respectively. From the year 2028 on, the year to year growth rate of the unlevered free cash flow is projected to be 3%. The WACC is 15%.
What is the present value of the unlevered free cash flows of year 2022 to 2027 [. ] ? What is the terminal value [. ] ? What is the present value of the terminal value [. ? What is the firm value today [. ] ?
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