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WDSs weighted average cost of capital is 11%. Projected free cash flows of WDS during the next 4 years are follows: Year 1 2 3

WDSs weighted average cost of capital is 11%. Projected free cash flows of WDS during the next 4 years are follows:

Year 1 2 3 4 FCF (Millions) 40 -12 18 30

After year 4, FCF is expected to grow at a constant 5% rate. Calculate the total value of WDS at time period 0 if it has $27 million in marketable securities.

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