Question: PLEASE SHOW WORKINGS, ANSWERS BELOW Question 2 0 / 1 point Rentech Ltd company a biotech company, is expected to grow rapidly in the next

PLEASE SHOW WORKINGS, ANSWERS BELOW

Question 2

0 / 1 point

Rentech Ltd company a biotech company, is expected to grow rapidly in the next three years and then have a level growth rate for the foreseeable future. The company expects free cash flows of $327.4 million, $543.3 million, and $843.3 million over the next three years, and thereafter its cash flows will grow at a steady rate of 6 percent per annum. The company has no non-operating assets (NOA). If the appropriate WACC is 9.36 percent, what is the enterprise value of this business?

Round the answer to two decimals.

Please enter the answer in millions with two decimals.

Answer:

(21,739.47)

Question 3

0 / 1 point

You are valuing a company using the WACC approach and have estimated that the free cash flows from the firm (FCFF) in the next five years will be $51.03 million , $52.14, $54.15, $56.39, and $57.65 million, respectively. Beginning in year 6, you expect the cash flows to decrease at a rate of 2.1 percent per year for the indefinite future. You estimate that the appropriate WACC to use in discounting these cash flows is 10.34 percent. What is the value of this company?

Answer:

(480.07)

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