What is the terminal or horizon value of operations hint, Finance Basics

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What is the terminal or horizon value of operations hint

Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,00 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company's weighted average cost of capital is 12%.

a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash blows Year 2 discounted back to Year 2.)

b. Calculate the value of Brook's operations.

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Finance Basics: What is the terminal or horizon value of operations hint

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Finance Basics: What is the terminal or horizon value of operations hint

Reference No:- TGS0601072

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Recent Questions Asked Finance Basics

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Finance Basics: What is the terminal or horizon value of operations hint

Reference No:- TGS0601072

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