Jumbo, an online retailer, is expected to grow rapidly in the next five years and then have a stable growth rate for the foreseeable future. The firm expects free cash flows of €262.5 million next year. These cash flows are expected to grow at a 30 per cent rate over the following four years and thereafter its cash flows will grow at a steady rate of 6 per cent per annum.

The company has non-operating assets (NOA) of €31 million in the form of cash. If the appropriate WACC is 9 per cent, What is the enterprise value of this business?  

Answer rating: 100% (QA)

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