Determine the horizon value at 2016 if growth from 2015, Ask an Expert

Finance

Horizon Value

Current and projected free cash flows for Radell Global Operations are shown below.

Actual Projected

2013 2014 2015 2016

Free cash flow $614.60 $675.28 $715.33 $765.40

(millions of dollars)

Growth is expected to be constant after 2015, and the weighted average cost of capital is 11.1%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9214877

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