Suppose your company's WACC=12% and you know that the free cash flow of your company next year is going to be FCF-$1.2 and then FCF is expected to grow at 8%. Then the PCF is and the company's horizon value in one year is This means that the firm's value today is
Suppose your company's WACC=12% and you know that the free cash flow of your company next year is going to be FCF-$1.2 and then FCF is expected to grow at 8%. Then the PCF is and the company's horizon value in one year is This means that the firm's value today is
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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![Suppose your company's WACC=12% and you know that the free cash flow of your company next year is going to be FCF-$1.2 and then
FCF is expected to grow at 8%. Then the FCF, is
and
the company's horizon value in one year is
This means that the
firm's value today is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84f44bd9-8ddf-434e-be44-c8ca2232eec0%2F515444b9-719e-46e8-89cf-ec86bf910a84%2F27fiwda_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose your company's WACC=12% and you know that the free cash flow of your company next year is going to be FCF-$1.2 and then
FCF is expected to grow at 8%. Then the FCF, is
and
the company's horizon value in one year is
This means that the
firm's value today is
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