You are asked to value the operations of a company. Based on the company's last financial statements, you think that the company's Free Cash Flow (FCF) was $4.2 M. In the short run, you think the firm will grow its FCF at 8.0% per year. After year 4, you think that the firm will have a terminal growth rate of 4% (FCF_5 = FCF_4 *(1.04)). If the discount rate for this firm is 8.8%, what is the Enterprise Value of this company?

Answer rating: 100% (QA)

To calculate the Enterprise Value EV of the company we need to calculate the present value of all fu... View the full answer