We are in year 2012 In this question, we will calculate Rosengartens enterprise value in 2012 using the discounted cash flow approach (as opposed to the multiples approach) For your convenience, Rosengartens projected free cash flows for the next three years are repeated in the table below 2013 2014 2015 FCF ($M) 501 5 101 305 9 Rosengarten projects that its free cash flows will grow at a constant rate of 5 after 2015 The cost of capital for Rosengartens assets is 10 a) What is Rosengartens free cash flow in 2016 b) What is Rosengartens enterprise value in 2015 afterthe firmgenerates the years free cash flow c) What is Rosengartens enterprise value in 2012

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Question: We are in year 2012. In this question, we will calculate Rosengartens enterprise value in 2012 using the discounted cash flow approach (as opposed to

We are in year 2012. In this question, we will calculate Rosengartens enterprise value in 2012 using the discounted cash flow approach (as opposed to the multiples approach). For your convenience, Rosengartens projected free cash flows for the next three years are repeated in the table below.

	2013	2014	2015
FCF ($M)	-501.5	101	305.9

Rosengarten projects that its free cash flows will grow at a constant rate of 5% after 2015. The cost of capital for Rosengartens assets is 10%. a) What is Rosengartens free cash flow in 2016? b) What is Rosengartens enterprise value in 2015 afterthe firmgenerates the years free cash flow? c) What is Rosengartens enterprise value in 2012?

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