Suppose Mature No Dividends Corporation's free cash flow during the just-ended (t = 0) year was $175 million, and FCF is expected to grow at a constant rate of 7% in the future. If the weighted average cost of capital is 18%, what is the firm's value of operations, in millions? Enter your answer rounded to two decimal places.
firm's value of operations=Free cash flow for next period/(WACC-Growth rate)
=(175*1.07)/(0.18-0.07) million
which is equal to
=$1702.27 million(Approx).
Suppose Mature No Dividends Corporation's free cash flow during the just-ended (t = 0) year was...
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