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What is the horizon value in millions at

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Problem 1: Simonyan Inc. forecasts a free cash flow of $40 million in Year 3, i.e., at t = 3, and it expects FCF to grow at a constant rate of 5% thereafter. If the weighted average cost of capital is 10% and the cost of equity is 15%, what is the horizon value, in millions at t = 3?

Note: This is the number that would later be discounted back to time period 0 for a valuation, i.e. the answer is before final discounting.

Reference no: EM132948932

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