Question
Warehousing is expected to generate a free cash flow (FCF) of $210.00 million this year (FCF = $210.00 million), and the FCF is expected to
Warehousing is expected to generate a free cash flow (FCF) of $210.00 million this year (FCF = $210.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If 123 Warehousings weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of 123 Warehousing? (Note: Round all intermediate calculations to two decimal places.)
$666.29 million
$7,895.34 million
$8,021.64 million
$6,684.70 million
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