What is the pv of fcfs for years 1 through 10

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Reference no: EM132620331

Your forecast of a company's free cash flows for the next ten years is given in the table below (rows 14-15). The company is expected to achieve a steady state growth of 2% after the 10th year. The WACC for the company is estimated at 10%.

i) What is the PV of FCFs for years 1 through 10?

ii) What is the terminal value as of the year 0? (i.e., the PV as of now of FCFs beyond year 10)

iii) What is the value of the company?

Year 1 2 3 4 5 6 7 8 9 10

FCF ($mm) 435 450 500 525 558 579 487 463 515 548

i) PV(FCF, year 1-10)

ii) PV(terminal value)

iii) Value of the firm

Reference no: EM132620331

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