Fauji Fertilizer Corporation expects to generate following free cashflows in coming 5 years. Year 1 2 3 4 5 FCF (Rs. Million) 51 70 77 72 80 After this time period, the free cashflows will grow constantly at 3% per year. The firm’s cost of capital is 13%. Using the discounted free cashflow model, calculate the following What is the enterprise value of Fauji Fertilizer Ltd?
Fauji Fertilizer Corporation expects to generate following free cashflows in coming 5 years. Year 1 2 3 4 5 FCF (Rs. Million) 51 70 77 72 80 After this time period, the free cashflows will grow constantly at 3% per year. The firm’s cost of capital is 13%. Using the discounted free cashflow model, calculate the following What is the enterprise value of Fauji Fertilizer Ltd?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Fauji Fertilizer Corporation expects to generate following free cashflows in coming 5 years.
|
Year |
1 |
2 |
3 |
4 |
5 |
|
FCF (Rs. Million) |
51 |
70 |
77 |
72 |
80 |
After this time period, the free cashflows will grow constantly at 3% per year. The firm’s cost of capital is 13%. Using the discounted free cashflow model, calculate the following
What is the enterprise value of Fauji Fertilizer Ltd?
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