Suppose a company's projected free cash flow for next year is $500 million and it is expected to grow at a constant rate of 6%. If the company's weighted average cost of capital is 11%, what is the current value of operations, to the nearest million? Hint please consider FCF0 vs FCF1© BrainMass Inc. brainmass.com March 21, 2019, 7:53 pm ad1c9bdddf
The current value of operations is the present value of free cash flows (FCF). Since ...
The solution explains how to calculate the current value of operations