Stm enterprises has never paid a dividend free cash flow is, Ask an Expert

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STM enterprises has never paid a dividend. Free cash flow is projected to be $70,000 and $110,000 for the next 2 years, respectfully; after the second year, FCF is expected to grow at a constant rate of 9%. The company's WACC is 12%. Calculate STM’s value of operations. (Hint: you will need to calculate the horizon value from Year 2 forward).

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Financial Management, Finance

Category:- Financial Management
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