Question: QUESTION 13 1. You are valuing a company today, using the FCF valuation method. The company's most current cash flow is 135 million, and you
QUESTION 13 1. You are valuing a company today, using the FCF valuation method. The company's most current cash flow is 135 million, and you forecasted the free cash flows for the next 4 years in the table below. You estimate that the company will grow at the same rate as its industry, 3.5%, after 2021 indefinitely. If the cost of capital is 10%, what is the value of this company? Year FCF (Million) 2018 185 2019215 2020 355 2021 455 4610.06 million 3426.92 million 3789.46 million 4823.96 million 5871.79 million
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