Scripps Inc. is projected to generate a free cash flow of $1,100,000 in its terminal year, at which point it is forecasted to have a 4% growth rate. The firm's cost of equity is estimated to be 12%. Calculate the terminal value of Scripps Inc.

Financial Management: Theory & Practice
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ISBN:9781337909730
Author:Brigham
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Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
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Scripps Inc. is projected to generate a free
cash flow of $1,100,000 in its terminal year, at
which point it is forecasted to have a 4%
growth rate. The firm's cost of equity is
estimated to be 12%.
Calculate the terminal value of Scripps Inc.
Transcribed Image Text:Scripps Inc. is projected to generate a free cash flow of $1,100,000 in its terminal year, at which point it is forecasted to have a 4% growth rate. The firm's cost of equity is estimated to be 12%. Calculate the terminal value of Scripps Inc.
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