What is the company value of operations

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An analyst is estimating the market value of Geologic Inc. and has decided on a planning period of 3 years. She estimates the company's free cash flow for the current year (i.e., FCF0) to be $80.00 million. She believes that Geologic's FCFs will increase by 20% per year for the next 3 years and by 3.5% per year indefinitely after the third year. The company's WACC is 15%.

Problem 1: What is the company's value of operations?

Reference no: EM132962701

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