The firms weighted average cost of capital is 10 what is


Free cash flow last year was $4 million. It is expected to grow by 20% in the current year (assume that you are at the end of the current year), at a 15% rate annually for the five years after that, and then assume a more normal 4% growth rate thereafter (forever). The firm’s weighted average cost of capital is 10%. What is the value of the firm?

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Financial Management: The firms weighted average cost of capital is 10 what is
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