Solved: You estimate that the company will grow at the same rate as, Business Economics

+44 141 628 6080
[email protected]

You estimate that the company will grow at the same rate as

You are valuing a company today, using the FCF valuation method. The company's most current cash flow is 135 million, and you forecasted the free cash flows for the next 4 years in the table below. You estimate that the company will grow at the same rate as its industry, 3.5%, after 2021 indefinitely. If the cost of capital is 10%, what is the value of this company?

Year FCF (Million)

2018 165

2019 185

2020 235

2021 255

3426.92 million

3789.46 million

5871.79 million

4610.06 million

4823.96 million

View Complete Question

Solution Preview :

Prepared by a verified Expert

Business Economics: You estimate that the company will grow at the same rate as

Reference No:- TGS02872334

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Problem regarding the america youth and social media

Think about where you were the most and least engaged when reading a classmate's draft. Think about what captured your attention

Describe some of your personality traits

Adler believed that your birth order determines, to a large extent, your personality. He stated that your traits reflect, somehow, how you have achieved

Why you feel unpleasantly hot and sweaty

Working in the yard, you feel unpleasantly hot and sweaty when you come in the house, so you take a shower and begin to feel better.

How we perceive objects in the real world

Suppose that a group of researchers would like to explore how we perceive objects in the real world, rather than just in a laboratory

Outline a social issue that is important to you

Outline a social issue that is important to you. Describe why it is important to you, why it is important from a societal perspective and how you think

Discussion about gender stereotyping

Prior to your taking this graduate HR law class you had heard of the term "gender stereotyping," but didn't know much about it.

Identify one antecedent, one behaviour, and one consequence

Sahir is the most active student in your kindergarten class. He tends to be very disruptive when the teacher you work with is teaching the class,

Solution Preview :

Prepared by a verified Expert

Business Economics: You estimate that the company will grow at the same rate as

Reference No:- TGS02872334

Have a Question? (oR Write a Review)

Recent Questions Asked Business Economics

Q : Calculate the wall area of each room and a total for the

Q : The company has 15 million shares of common stock

Q : Displays the number of cpu cores displays the total amount

Q : The companys beta is 165 the market risk premium is 85 and

Q : You estimate that the company will grow at the same rate as

Q : The company has a dividend payout ratio of 50 book value

Q : Write a new program that will prompt the user for a

Q : What is the price of a government bond that pays 90

Q : What are some key indicators of a company with a strong