At the end of 2009, you forecast that a firm's free cash flow for 2010 will be

Question:

At the end of 2009, you forecast that a firm's free cash flow for 2010 will be $430 million. If you forecast that free cash flow will grow at 5% per year there after, what is the enterprise value? Use a required return of 10%.

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...