Dozier Corporation is a fast-growing supplier of office products. Analysts project the following FCF during the next 3 years, after which FCF is expected grow at a constant 8 percent. Dozier’s WACC = 13%.                                                                                   Time                     YEAR 1              2                3          4        FCF (million)               20                    30               40        8% growth             1. What is Dozier’s terminal, or horizon value (value of operation at time 3 for constant part)? 2. What is the current value of operations (present value of all cash flow)?

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