You are valuing a company using the WACC approach and have estimated that the free cash flows from the firm (FCFF) in the next five years will be $50.00 million , $53.69, $55.95, $56.20, and $57.69 million, respectively. Beginning in year 6, you expect the cash flows to decrease at a rate of 2.2 percent per year for the indefinite future. You estimate that the appropriate WACC to use in discounting these cash flows is 11.29 percent. What is the value of this company?

Answer rating: 100% (QA)

To calculate the value of the company using the Weighted Average Cost of Capital WACC approach you c... View the full answer