If fina3380 industries has a weighted average cost of


An analyst seeks to determine the value of FINA3380 Industries. After careful research, the analyst believes that free cash flows for the firm will be $60 million in 2017 and will grow at 8% for 2018 and 2019. The free cash flows will grow at a constant rate of 4% after 2019 indefinitely. If FINA3380 Industries has a weighted average cost of capital of 9%, find the market value of the firm. (Assume that we are at January 1, 2017).

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Financial Management: If fina3380 industries has a weighted average cost of
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