Question
Your friend has told you that Big Friendly Groceries is expecting free cash flows of 185 for 2021, 260 for 2022, 307 for 2023, and
Your friend has told you that Big Friendly Groceries is expecting free cash flows of 185 for 2021, 260 for 2022, 307 for 2023, and 331 for 2024. After 2024, the free cash flows are expected to grow by 4% per year forever. What is the value of Big Friendly Groceries as of the end of 2020 if the discount rate is 15%?
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Warren Buffetts Ground Rules Words Of Wisdom From The Partnership Letters Of The Worlds Greatest Investor
Authors: Jeremy C. Miller
1st Edition
0062415565,0062415573
