Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to

Question:

Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2006. The weighted average cost of capital is 11 percent. What is the horizon, or continuing, value?

PROJECTED Actual 2004 2005 2006 2007 Free cash flow (millions of dollars) $606.82 $667.50 $707.55 $750.00

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...