Question
The ABC Inc. current Free cash flow is $80M. The FCF growth rate for the next two years is 40% per year. Thereafter the FCF
The ABC Inc. current Free cash flow is $80M. The FCF growth rate for the next two years is 40% per year. Thereafter the FCF growth rate is 5% per year. The WACC is 13%. Derive the companys horizon value.
| A. | $2,058M | |
| B. | $2,956M | |
| C. | $3,579M | |
| D. | $3,967M | |
| E. | $4,690M |
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
1259307417, 978-1260153132, 1260153134, 978-1259307416
