What is the value of firm operations today

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A firm is forecasted to have the following FCF over the next five years: $10,000, $12,500, $16,000, $18,000, and $23,000. Constant growth of 5% is expected after year 5. The firm has a weighted average cost of capital of 8%.

a. Find the horizon value in year 5 for the firm’s constant growth phase.

b. What is the value of firm operations today?

Reference no: EM132040408

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