What is the horizon value in year four

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Reference no: EM131502907

The Adam Company is all-equity financed and has the following free cash flows in years 1-4: $3 million ($3M); $3.7M; $4M; $4.2M. After year 4, the firm is expected to grow at a sustainable rate of 3% per annum. With a WACC of 12%, what is the horizon value in year 4 of Macadam Co?

Reference no: EM131502907

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