Wall Inc.forecasts that it will have the free cash flows (in millions)shown below.Assume the firm has zero non-operating assets.If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3,what is the firm's total corporate value,in millions? Do not round intermediate calculations. $$\begin{array} { l r r r }
\text { Year } & 1 & 2 & 3 \
\hline \text { Free cash flow } & - \$ 20.00 & \$ 48.00 & \$ 50.50
\end{array}$$
?

Question

Wall Inc.forecasts that it will have the free cash flows (in millions)shown below.Assume the firm has zero non-operating assets.If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3,what is the firm's total corporate value,in millions? Do not round intermediate calculations. $$\begin{array} { l r r r } 
\text { Year } & 1 & 2 & 3 \
\hline \text { Free cash flow } & - \$ 20.00 & \$ 48.00 & \$ 50.50
\end{array}$$
?

Quizplus · Accepted Answer

The Answer of Wall Inc.forecasts that it will have the free cash flows (in millions)shown below.Assume the firm has zero non-operating assets.If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3,what is the firm's total corporate value,in millions? Do not round intermediate calculations. $$\begin{array} { l r r r } 
\text { Year } & 1 & 2 & 3 \
\hline \text { Free cash flow } & - \$ 20.00 & \$ 48.00 & \$ 50.50
\end{array}$$
?

Wall IncForecasts That It Will Have the Free Cash Flows (In