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    Calculating the terminal value and value of operations

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    The Beatle Co. has never paid a dividend. FCF is projected to be $40,000 and $50,000 for the next two years, and after the second year it is expected to grow at a constant rate of 6%. The WACC is 11%.

    1) What is the terminal or horizon, value of operations in millions?

    2) What is the value of the Beatle Company operations?

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    Solution Preview

    1) What is the terminal or horizon, value of operations in millions?
    FCF1=$40000
    FCF2=$50000
    Growth ...

    Solution Summary

    Solution depicts the steps to calculate the terminal value and value of operations.

    $2.19

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