What is the horizon value of operations

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Problem - A company expects FCF of 2$10 million at Year 1 and FCF of $20 million at Year 2; after Year 2, FCF is expected to grow at a 5% rate. If the WACC is 10%, then what is the horizon value of operations, Vop(Year 2)? What is the current value of operations, Vop(Year 0)?

Reference no: EM132727690

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