The growth is expected to remain constant

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1. H and L Inc. forecasts the free cash flow of $15 million today. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the growth is expected to remain constant in Year 3 and beyond, what is the value of operations, in millions?

2. For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment Years Interest Rate $ $ 2,250 7 8 % 1,355 9 7 12,205 14 9 31,400 30 11.

Reference no: EM131870112

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