The original Seven Essays, in a cool, new outfit ...
Call 412-567-OXEN [6936] Fax 412-567-6936 Email - [email protected]

Zhdanov Inc. forecasts that its free cash flow in the coming year, that is, at t = 1, will be $10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm s value of operations, in millions?

  1. (required)
  2. (valid email required)
 

Zhdanov Inc. forecasts that its free cash flow in the coming year, that is, at t = 1, will be $10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm s value of operations, in millions?