Question: 5 pts Question 20 Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%,
5 pts Question 20 Heath and Logan Inc. forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond what is the Year O value of operations, in millions? 1 2 3 ----> 5% Year: -$15 $10 $40 Free cash flow: $ 386 m O $245 m $528 m $436 m $284 m $349 m
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