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Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted
Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 16% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the firms total corporate value, in millions? Do not round intermediate calculations.
Year | 1 | 2 | 3 |
Free cash flow | -$20.00 | $48.00 | $50.88 |
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