Question
The formula for value of the firm is : V=sum[(FCF(t))/(1+wacc)^t] In this formula what is sum []? Is there and alternative formula for the above
The formula for value of the firm is :
V=sum[(FCF(t))/(1+wacc)^t]
In this formula what is sum []? Is there and alternative formula for the above formula? I do not understand the formula. Please explain step by step including how to get FCF(t) and wacc. I am aware FCF is free cash flow but it says FCF(t) is that "FCF *t"?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
