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    Current value of operations

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    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

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    The current value of operations is the present value of free cash flows (FCF). Since ...

    Solution Summary

    The solution explains how to calculate the current value of operations

    $2.19

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