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

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
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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
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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