- Video Lesson-Stocks and Their Valuation so it must be used to compensate common stockholders, preferred stockholders, and bondholders; WACC is weighted average cost of all the firm's capital, such as debt, preferred stock, and common equity. Free cash flows are forecasted for 5 to 10 years, after which it is assumed that the company reaches its horizon date. That is, the final explicitly forecasted FCF will grow at some long-run constant rate. You can use the following formula to calculate the market value of the company's operations as of that date: Suppose vour company WACC =12% and you know that the tree cash fiaw of your company next year is going to be FCF,=S13,85 and then FCF is expected to grow at 65 , Then the FCl ond the company's horizon value in one vear is This means that the firm's value today is According to the video, what is the formula for CarequMed's horizon value? HV3=WCCCgFCF3HV4=W+gFCF3HV3=WCCRFCF4HV4=FCF5(1+g) Care4umed's horizon value is million. According to the video, what is the formula for the firm's value today? Caresumeas value today is milison - Video Lesson-Stocks and Their Valuation so it must be used to compensate common stockholders, preferred stockholders, and bondholders; WACC is weighted average cost of all the firm's capital, such as debt, preferred stock, and common equity. Free cash flows are forecasted for 5 to 10 years, after which it is assumed that the company reaches its horizon date. That is, the final explicitly forecasted FCF will grow at some long-run constant rate. You can use the following formula to calculate the market value of the company's operations as of that date: Suppose vour company WACC =12% and you know that the tree cash fiaw of your company next year is going to be FCF,=S13,85 and then FCF is expected to grow at 65 , Then the FCl ond the company's horizon value in one vear is This means that the firm's value today is According to the video, what is the formula for CarequMed's horizon value? HV3=WCCCgFCF3HV4=W+gFCF3HV3=WCCRFCF4HV4=FCF5(1+g) Care4umed's horizon value is million. According to the video, what is the formula for the firm's value today? Caresumeas value today is milison