Growth is expected to be constant

Assignment Help Financial Management

Reference no: EM13939745

Current and projected free cash flows for Radell Global Operations are shown below.

Free cash flow (in millions)

Actual 2013

$606.96

2014

$667.64

Projected 2015

$707.69

2016

$764.31

Growth is expected to be constant after 2015, and the weighted average cost of capital is 10.45%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places.

Reference no: EM13939745

Questions Cloud

Constant growth valuation : Constant Growth Valuation Crisp Cookware's common stock is expected to pay a dividend of $2.75 a share at the end of this year (D1 = $2.75); its beta is 1.15; the risk-free rate is 4.4%; and the market risk premium is 5%.

Putting artificial satellites into orbits around the earth : Science, like any knowledge, can be put to good or bad use, depending on the user. Given below are some of the applications of science. Formulate your views on whether the particular application is good, bad or something that cannot be so clearly ..

Restricted or relaxed current asset investment policy : Zorn Corporation is deciding whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales are expected to total $3,600,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% ..

Explain the pathogenesis and physiology, as well as signs : Explain the pathogenesis and physiology, as well as the signs, symptoms, treatment, and nursing actions of the following conditions:- presbyopia

Growth is expected to be constant : Growth is expected to be constant after 2015, and the weighted average cost of capital is 10.45%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant?

How much would it be willing to lend the business owner : A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,900 per month for the next three years and then $3,800 per month for two years after that. If the bank is charging customers 9.75 percent APR, ..

What are some long-term options of financing : What are some long-term options of financing? How can leverage affect the value of the firm? What is homemade leverage?

Research the personally controlled electronic health record : Task: You are required to research the personally controlled electronic health record currently being implemented by the Australian Government, and write about 1000 words DB post.

What is the company pretax cost of debt : Mudvayne, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 110 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. ..

User Account

All Pages