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What is its expected free cash flows in four years from today? Consider a company that is projected to generate revenues of $195 million next
What is its expected free cash flows in four years from today?
Consider a company that is projected to generate revenues of $195 million next year. Analysts expect revenues to grow at a 5.0% annual rate for the following two years (until the end of year 3 ) and then at a stable rate of 2.7% in perpetuity. If the company is expected to have a gross margin of 75%, operating margin of 60%, net margin of 25%, tax rate of 11.0%, and reinvestment rate of 63%, what is its expected free cash flows in four years from today? Answer in millions, rounded to one decimal placo (0.9.,$2,315,612=2.3) Step by Step Solution
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