Question: Current and projected free cash flows for Radell Global Operations are shown below. Actual 2018 2019 Projected 2020 2021 Free cash flow $611.08 $671.76 $711.81
Current and projected free cash flows for Radell Global Operations are shown below.
| Actual 2018 | 2019 | Projected 2020 | 2021 | |
| Free cash flow | $611.08 | $671.76 | $711.81 | $768.75 |
| (millions of dollars) |
Growth is expected to be constant after 2020, and the weighted average cost of capital is 11.15%. What is the horizon (continuing) value at 2021 if growth from 2020 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
$ million
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
