Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non- operating assets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round intermediate calculations. Year 1 2 $593.56 $634.29 $581.92 3 FCF -$15.00 $10.00 $60.00 $721.58 $459.71

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-
operating assets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue
growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round
intermediate calculations.
2
Year 1
FCF -$15.00 $10.00 $60.00
$721.58
$459.71
$593.56
$634.29
$581.92
3
Transcribed Image Text:Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non- operating assets. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round intermediate calculations. 2 Year 1 FCF -$15.00 $10.00 $60.00 $721.58 $459.71 $593.56 $634.29 $581.92 3
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