Year FCF

1 55

2 67

3 89

4 112

g = 5%

WACC = 15%

1-What is the PV of Year 1 FCF?

a)55.88

b)47.83

c)67.34

d)89.21

2-What is the PV of Year 2 FCF?

a)50.66

b)55.00

c)112.65

d)58.52

3-What is the PV of Year 3 FCF?

a)89.00

b)67.00

c)58.52

d)47.83

4-What is the value of the firms operations, V_op?

a)1257.36

b)362.97

c)1176.59

d)893.42

5-What is the intrinsic value, IV?

a)893.42

b)1276.98

c)555.39

d)496.32

6-What is the horizon value, HV?

a)893.42

b)1176.00

c)64.04

d)672.38

7-What is the PV of the horizon value, HV?

a)672.38

b)42.83

c)50.66

d)1176.00