The table below shows the forecast of free cash flows for a firm from year 1 to
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Question:
The table below shows the forecast of free cash flows for a firm from year 1 to year 5.
Year | Year 0 Historical | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
FCF | $59,184 | $72,021 | $83,805 | $92,185 | $99,560 |
If the long term growth rate of free cash flow beyond year 5 is equal to 6.27% per year, and the WACC is equal to 11.72%, calculate the enterprise value of the firm today (year 0).
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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