In an M&A evaluation using discount cash flow method, the estimated FCFF of the target firm for the next two years (i.e., year 1 and year 2) will be $30 million and $35 million, respectively. Thereafter the FCFF is forecasted to grow by 4% a year. The firm's WACC is 10%. 

Estimate the value of  the firm.

Answer rating: 100% (QA)

To estimate the value of the firm using the Discounted Cash Flow DCF method well calculate the prese... View the full answer