What is the terminal or horizon value of operations?, Ask an Expert

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Brooks Enterprises has never paid a dividend. Free cash is projected to be $80,000 and $100,000 for the next 2 years respectively, and after the second year it is expected to grow at a constant rate of 8%. The company's weighted average cost of capital is WACC=12%

a) What is the terminal or horizon value of operations?

b) find out the value of Brooks operations.

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