A company forecasts free cash flow of 40 million in three


A company forecasts free cash flow of $40 million in three years. It expects the free cash flow to grow at a constant rate of 5 percent thereafter. If the weighted average cost of capital is 10 percent and the cost of equity is 15 percent, what is the horizon value, to the nearest million?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: A company forecasts free cash flow of 40 million in three
Reference No:- TGS01254244

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)