Question: Question 8 (3.125 points) Barry Company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years.

 Question 8 (3.125 points) Barry Company is undergoing a restructuring, and
its free cash flows are expected to vary considerably during the next

Question 8 (3.125 points) Barry Company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $153 million in Year 6, and the FCF growth rate is expected to be a constant 7.8% beyond that point. The weighted average cost of capital (WACC) is 15%. What is the horizon (or continuing) value (in millions) at t = 6? $2,125 $1,020 $1,836 $2,291 $1,100 Question 8 (3.125 points) Barry Company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $153 million in Year 6, and the FCF growth rate is expected to be a constant 7.8% beyond that point. The weighted average cost of capital (WACC) is 15%. What is the horizon (or continuing) value (in millions) at t = 6? $2,125 $1,020 $1,836 $2,291 $1,100

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