You are evaluating a start-up company that is currently generating $500,000 in annual revenue. The company is expected to grow at a rate of 10% per year for the next 5 years before slowing down to a 5% growth rate for the following 5 years. The company has a cost of capital of 12%. Using the discounted cash flow method, what is the current enterprise value of the company?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Step 1 Calculate the Free Cash Flow to the Firm FCFF FCFF EBIT 1 tax rate depreciation am... View the full answer