Compute the value of the business

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Valuing a Business -Valuation Methods Capital Budgeting

The following information is given:

For example, ABC Co.has free cash flow earnings of:

Year 1: $8,000

Year 2: $10,000

Year 3: $9,000

Year 4: $11,000

Year 5: $12,000

Problem 1: And we know that the weighted average cost of capital is 8%.(WACC) The other piece of information that is given is the estimated free cash flow long termaverage growth of 4% per year. Compute the value the business? (Show calculation and formulas)Being the ownerofthis business and you want to sell it. You should sell it for this much as a "fair price".

Reference no: EM132643912

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