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UESTION 9UESTION 9 Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years,
UESTION 9UESTION 9
- Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 5% rate. Dozier's weighted average cost of capital is WACC = 12%. What is Dozier's terminal, or horizon, value?
- Year123Free cash flow ($ millions)
Free cash flow ($ millions) 1.($10), 2.$25 3.$50
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
