Horizon Value of Free Cash Flows JenBritt Incorporated had a free cash flow (FCF) of $78 million in 2023. The firm projects FCF of $255 million in 2024 and $590 million in 2025. FCF is expected to grow at a constant rate of 4% in 2026 and thereafter. The weighted average cost of capital is 8%. What is the current (i.e., beginning of 2024) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places. ta 13001.89 million
Horizon Value of Free Cash Flows JenBritt Incorporated had a free cash flow (FCF) of $78 million in 2023. The firm projects FCF of $255 million in 2024 and $590 million in 2025. FCF is expected to grow at a constant rate of 4% in 2026 and thereafter. The weighted average cost of capital is 8%. What is the current (i.e., beginning of 2024) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places. ta 13001.89 million
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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Transcribed Image Text:Horizon Value of Free Cash Flows
Jen Britt Incorporated had a free cash flow (FCF) of $78 million in 2023.
The firm projects FCF of $255 million in 2024 and $590 million in 2025.
FCF is expected to grow at a constant rate of 4% in 2026 and thereafter.
The weighted average cost of capital is 8%. What is the current (i.e.,
beginning of 2024) value of operations? Do not round intermediate
calculations. Enter your answer in millions. For example, an answer of
$1 million should be entered as 1, not 1,000,000. Round your answer to
two decimal places.
LA
13001.89
million
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