Question: How do I find expected future free cash flows using growth assumptions? I'm doing a project and have come up with a FCF for 2016.
How do I find expected future free cash flows using growth assumptions?
I'm doing a project and have come up with a FCF for 2016. In order to find the expected future FCFs for 2017-2021, is it okay to use the following formula?
Future FCF = FCF*((1+g)^n)
g = expected dividend growth rate
FCF = FCF for 2016
n=number of years (ex., 1,2,3,4,5)
If I am totally incorrect, please break down every singe step that I have to do to find future FCF. I'm very confused and need baby steps and layman's terms. Thanks
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