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Winters Inc. management estimates that the company will generate free cash flows from the firm (FCFF) of $12.5 million, $16.8 million and $19.7 million, respectively,
Winters Inc. management estimates that the company will generate free cash flows from the firm (FCFF) of $12.5 million, $16.8 million and $19.7 million, respectively, over the next three years. After that, FCFF will grow at a constant five percent per year forever. The company has $5 million in non-operational assets. If the appropriate W ACC is 8 percent, what is the enterprise value of this business? |
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