Heath and Logan Inc. forecasts Free Cash Flows for the following three years: Year 1 = negative $15 million; Year 2 = positive $10 million; Year 3 = positive $40 million. The weighted average cost of capital is 13% and the Free Cash Flows are expected to continue to grow at a constant 5% after year 3. What is the value of operations for Heath and Logan Inc.? Round the answer to the nearest million.

Answer rating: 100% (QA)

To calculate the value of operations for Heath and Logan Inc we can use the discounted cash flow DCF ... View the full answer