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

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

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