Solution-Determining the forecasted fcff

Determining the forecasted fcff

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Reference no: EM131041389

Assume the following free cash flows for Fischer Inc. for 2013 and forecasted FCFF for 2014 onward:

Current

Forecast Horizon

Terminal

($ millions)	2013	2014	2015	2016	2017	Year
Free cash flows to the firm (FCFF)	$7,327	$7,598	$8,004	$8,725	$9,480	$9,764

The DCF value of the firm using the FCFF information above, a discount rate of 7%, and an expected terminal growth rate of 2.5%, is:

Select one:

A. $193,978 million

B. $183,149 million

C. $ 50,898 million

D. $ 42,141 million

Reference no: EM131041389

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Determining the forecasted fcff

Reference no: EM131041389

Reference no: EM131041389

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