What is correct firm value

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Alex is a new intern in an investment bank. She is trying to value a firm using non-constant growth model. Firm's free cash flow in current year is $10m. FCF will grow by 12%, 10%, and 8% in years 1, 2, and 3, respectively. Alex assumes WACC=10%, uses the wrong formulas and finds that firm value is $108.33m. Alex's manager says the actual WACC of firm should be 12% and want Alex to re-calculate correct firm value. What is the correct firm value?

Reference no: EM132061176

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