# Calculate value of operations using WACC

Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3.

What is the Year 0 value of operations, in millions?

Year 1 2 3

FCF -$15.0 $10.0 $40.0

https://brainmass.com/business/weighted-average-cost-of-capital/weighted-average-cost-ryan-enterprises-365369

#### Solution Preview

Use the perpetuity growth formula to discount the cash flow after year 3 to year ...

#### Solution Summary

Provides steps necessary to calculate the weighted average.

$2.19