Description of Free Cash flows
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A company generated free cash flow of $ 1 million last year and expects it to grow at a constant rate of 8% indefinitely. The company's WACC is 10%.
a. Calculate the company's free cash flow for next year.
b. Calculate the value of the company's operations.
c. How much would the value of operations change if expected growth is 5%?
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a. Free Cash For Next Year = 1M *1.08 = 1.08 M
b. Value of ...
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