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The forecasted cash flows of our company in the next five years are given in the table below. Today we are in Year 20x0 (Year
The forecasted cash flows of our company in the next five years are given in the table below. Today we are in Year 20x0 (Year 0), our company has $84,000,000 of long-term debt, and $14,000,000 of non-operating assets. After year 5, this company will approach a constant growth rate at 5.00%. The cost of capital is 11.00%. The company has 17 million common shares outstanding. Use FCFF model to answer the following questions. Year Expected FCF ($) 1 $ 2,140,000 2 $ 3,700,000 3 $ 5,850,000 4 $ 7,650,000 5 $ 10,530,000
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