XYZ Corporation, Inc. forecasts that its free cash flow in the coming year, i.e., at t =
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Question:
XYZ Corporation, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$15 million (negative), but its FCF at t = 2 will be $42 million. After Year 2, FCF is expected to grow at a constant rate of 5% forever. If the weighted average cost of capital is 11%, what is the firm's value of operations, in millions?Note: Enter your answer rounded off to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
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