Question
You expect CCM Corporation to generate the following free cash flows over the next four years: Year 1 2 3 4 FCF ($ millions) 25
You expect CCM Corporation to generate the following free cash flows over the next four years:
| Year | 1 | 2 | 3 | 4 |
| FCF ($ millions) | 25 | 28 | 32 | 37 |
Following year four, you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted average cost of capital is 13%. What is the market value of the company today?
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
