What is the horizon value in year 3 of wonka co

Reference no: EM133331588

Question: The Wonka Co. is all-equity financed and has the following free cash flows in years 1-3: $2.5 million ($2.5M), $3.6M, and $4.8M. After year 3, the firm is expected to grow at a sustainable rate of 2.7 percent per annum. With a WACC of 11.3 percent, what is the horizon value in year 3 of Wonka Co?

Reference no: EM133331588

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