A company forecasts free cash flow in year one will be RM1 million and free cash flow
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A company forecasts free cash flow in year one will be RM1 million and free cash flow in year 2 will be RM4 million. After the second year, free cash flow will grow at a constant rate of 5 percent per year forever. If the overall cost of capital is 10 percent, what is the current value of operations, to the nearest million?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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