What is the firm value of operations in millions

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Reference no: EM13972020

XYZ Corporation, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$12 million (negative), but its FCF at t = 2 will be $35 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 13%, what is the firm's value of operations, in millions? Note: Enter your answer rounded off to two decimal places.

Reference no: EM13972020

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