Determining the continuous value of radell

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Radell Global Operations are attached below. Steady growth is expected after 2007. The weighted average cost of capital is 11%. What is the continuous value (at the horizon) in 2007?

 

Actual

Forecasted

 

2005

2006

2007

2008

Free cash flow (millions of dollars)

606.82

667.5

707.55

750

Reference book: 

Corporate Finance: A Focused Approach by Ehrhardt and Brigham Second Edition

Reference no: EM133113611

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