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%.
Find the percent of value due to long-term cash flows.
| A. | 75.2% | |
| B. | 87.9% | |
| C. | 95.2% | |
| D. | 37.9% | |
| E. | 64.4% |
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
