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Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $ 8 0 , 0 0 0 and
Value of Operations
Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $ and $ for the next years, respectively; after the second year,
FCF is expected to grow at a constant rate of The company's weighted average cost of capital is
a What is the terminal, or horizon, value of operations? Hint: Find the value of all free cash flows beyond Year discounted back to Year Round
your answer to the nearest cent.
$
b Calculate Kendra's value operations. Do not round intermediate calculations. Round your answer to the nearest cent.
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