Question: Hello, kindly help me solve this problem about the Investment value at the horizon (continuous) (13-5) Radell Global Operations are attached below. Steady growth is
Hello, kindly help me solve this problem about the Investment value at the horizon (continuous)
(13-5) Radell Global Operations are attached below. Steady growth is expected after 2007. The weighted average cost of capital is 11%. What is the continuous value (at the horizon) in 2007?
| Actual | Forecasted | |||
| 2005 | 2006 | 2007 | 2008 | |
| Free cash flow (millions of dollars) | 606.82 | 667.5 | 707.55 | 750 |
Reference book:
Corporate Finance: A Focused Approach by Ehrhardt and Brigham Second Edition
Thanks!
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