Calculate value of operations using WACC
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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
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Solution Summary
Provides steps necessary to calculate the weighted average.
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Use the perpetuity growth formula to discount the cash flow after year 3 to year ...
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