ESCOM is a silver mining pool.The CFO of the company prepared free cash flow forecasts for the
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ESCOM is a silver mining pool.The CFO of the company prepared free cash flow forecasts for the next five years to be presented at the upcoming board meeting.
Based on this information, and considering that after five years the cash flows will grow at a constant growth rate of 5% forever, and that the estimated weighted average cost of capital of the company is fixed at 17%, determine the enterprise value of ESCOM.
year | 1 | 2 | 3 | 4 | 5 |
FCFs | -9.94 | -7.86 | -3.42 | 8.13 | 12.13 |
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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