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This past year ABC Company's free cash flow (FCF.) was $207,217. Analysts expect the company's free cash flow to grow by 22% this year (Year
This past year ABC Company's free cash flow (FCF.) was $207,217. Analysts expect the company's free cash flow to grow by 22% this year (Year 1), by 17% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The company's WACC is 9.00%. What is the company's value of operations? Round your answer to the nearest dollar, but ignore $ in your answer, e.g., xx.xx. (Hint: Use the formula for the value of operations.) 1 Year 0 2. FCF growth rate 22% 17% 5% FCF ($) ? ? ? $207,217
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