Calculate the horizon value


Current and projected free cash flows for Radell Global Operations are shown below.

Actual Projected
2013 2014 2015 2016
Free cash flow $614.60 $675.28 $715.33 $765.40
(millions of dollars)

Growth is expected to be constant after 2015, and the weighted average cost of capital is 11.1%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places.

 

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Finance Basics: Calculate the horizon value
Reference No:- TGS024227

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