Pizza Hut had free cash flows (FCF) of $1.05mm this past year. Projected FCFs for the next five years are $1.07mm, $1.10mm, $1.15mm, $1.20mm, and $1.25mm, respectively. After five year FCFs will be constant at $1.52mm. What is enterprise value (EV) in millions if the weighted average cost of capital is 8.7 percent?

Answer rating: 100% (QA)

To calculate the enterprise value EV using the discounted cash flow DCF approach we need to discount ... View the full answer