Question
XYZ Corporation, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its
XYZ Corporation, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its FCF at t = 2 will be $49 million. After Year 2, FCF is expected to grow at a constant rate of 5% forever. If the weighted average cost of capital is 18%, what is the firm's value of operations, in millions?
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Derivatives And Internal Models
Authors: Hans Peter Deutsch, Mark W. Beinker
5th Edition
3030229017, 9783030229016
