Question: Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1= -$15 million, but it expects positive numbers thereafter, with FCF2= 10 million,
Kedia Inc. forecasts a negative free cash flow for the coming year, FCF1= -$15 million, but it expects positive numbers thereafter, with FCF2= 10 million, and FCF3= 25 million. After Year 3, FCF is expected to grow at a constant rate of 5% forever. If the weighted average cost of capital(WACC) is 13.0%, what is the firms total corporate value, in millions? Round intermediate calculations to at least four decimal places.
a)$196.22
b)$239.29
c)$272.79
d)$268.01
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