Next year free cash flows for the aa company is expected to


Next year free cash flows for the AA company is expected to be $10 million. It is expected to grow for the following two years at 10% and then for 9% for the following year. You have determined that the EV/EBITDA for the firm in year 5 is expected to be 8 and that EBITDA in year 5 is estimated to be $15 million. If the WACC for the firm is 8%, cash of $10 million and the number of shares outstanding is 10 million, what is the value of the firm?

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Financial Management: Next year free cash flows for the aa company is expected to
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