BC Co. forecasts the following free cash flows to the firm (FCFF) in the coming years: Year 1: (₱10 million) Year 2: ₱20 million. After Year 2, the FCFF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, the firm’s value is nearest to ₱158,000,000 ₱167,000,000 ₱175,000,000 ₱184,000,000 ₱193,000,000
BC Co. forecasts the following free cash flows to the firm (FCFF) in the coming years: Year 1: (₱10 million) Year 2: ₱20 million. After Year 2, the FCFF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, the firm’s value is nearest to ₱158,000,000 ₱167,000,000 ₱175,000,000 ₱184,000,000 ₱193,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Co.
₱158,000,000
₱167,000,000
₱175,000,000
₱184,000,000
₱193,000,000
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