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Your firm would like to a proposed row operating division. You have forecasted cash flows for this division for the next five years, and have

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Your firm would like to a proposed row operating division. You have forecasted cash flows for this division for the next five years, and have estimated that the cost of capital is 14%. You would like to estimate a contration value. You have made the following forecast for the last year of your five-year forecasting horizons of dollar Years Revenue Operating income 542 Net income 35.2 99.4 Book value of equity 120.7 Nostalim ding yours have no debe You forecast for free cash fows after years wil grow at 2% per year forever. Estimate the continuation value in your using the perpetuity with growth formula We have to walims in the same wat die Therain what the mom the Profession in war with the camera PE 2. You forecast that are free cash fows her years will grow of 25 per year, forever. Estimate the continuation value in years, using the perpetuity with growth forma The continuation value in years million (Round to one decimal pace) ratio for the comparable firms today b. You have ted several time in the same industry as your operating division. The average Pre ratio for these me la 15. Estimate the continuation value tuming the Perto for your vision in years will be the same as the wenge PIE The continuation value in year 5 million found to one decimal place) Your firm would like to a proposed row operating division. You have forecasted cash flows for this division for the next five years, and have estimated that the cost of capital is 14%. You would like to estimate a contration value. You have made the following forecast for the last year of your five-year forecasting horizons of dollar Years Revenue Operating income 542 Net income 35.2 99.4 Book value of equity 120.7 Nostalim ding yours have no debe You forecast for free cash fows after years wil grow at 2% per year forever. Estimate the continuation value in your using the perpetuity with growth formula We have to walims in the same wat die Therain what the mom the Profession in war with the camera PE 2. You forecast that are free cash fows her years will grow of 25 per year, forever. Estimate the continuation value in years, using the perpetuity with growth forma The continuation value in years million (Round to one decimal pace) ratio for the comparable firms today b. You have ted several time in the same industry as your operating division. The average Pre ratio for these me la 15. Estimate the continuation value tuming the Perto for your vision in years will be the same as the wenge PIE The continuation value in year 5 million found to one decimal place)

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