Covington is expected to generate the above free cash flows over the next four years, after...
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Covington is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 3.2% per year. If the weighted average cost of capital is 12% and Covington has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Covington's expected terminal enterprise value? Year Free Cash Flow 1 $12 million 2 $18 million 3 $22 million 4 $36 million Covington is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 3.2% per year. If the weighted average cost of capital is 12% and Covington has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is Covington's expected terminal enterprise value? Year Free Cash Flow 1 $12 million 2 $18 million 3 $22 million 4 $36 million
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Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Posted Date:
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