Horizon or Continuing Value
13-5
Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2007. The weighted average cost of capital is 11%. What is the horizon or continuing value of 2007?
FCF ( in millions of Dollars)
Projected
Actual
2005 2006 2007 2008
$606.82 $667.50 $707.55 $750.00
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Active since 2003
BE, Thapar Institute of Engg and Technology
MS, Texas A&M University - College Station
MBA, University of Texas at Austin
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