Question
The free cash flows (in millions) shown below are forecast by Bailey Brothers.If the weighted average cost of capital is 11%, and FCF is expected
The free cash flows (in millions) shown below are forecast by Bailey Brothers.If the weighted average cost of capital is 11%, and FCF is expected to grow at a constant rate of 5% after Year 3 (i.e., Year 4 to infinity) then what is the approximate Value of Operations (Year 0), in millions?
Year:01234 . . . .
Free cash flow:-$50$100$400
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
