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Today is the end of Fiscal Year 2019. You have prepared the following planning period FCF forecast for Kellogg.The appropriate WACC is 6.75% and terminal
Today is the end of Fiscal Year 2019. You have prepared the following planning period FCF forecast for Kellogg.The appropriate WACC is 6.75% and terminal growth in FCF is expected to be 2% (which will start at the beginning of 2023).At the beginning of FY 2023, it is expected that the enterprise value will be 14 times EBITDA. What is the terminal value in FY 2022 dollars (in millions) using the growing perpetuity method?
Fiscal Year-end Values 2020 2021 2022
FCF (in millions) 1,619.3 1,684.1 1,751.4
TV ???
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