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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