Unlevered Value Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash
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Unlevered Value
Richter Manufacturing has a 10% unlevered cost of equity. Richter forecasts the following free cash flows (FCFs), which are expected to grow at a constant 5% rate after Year 3.
Year 1 Year 2 Year 3
FCF $790 $815 $875
What is the horizon value of the unlevered operations? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
What is the total value of unlevered operations at Year 0? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
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