Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations...

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Finance

Horizon Value of Free Cash Flows Current and projected free cashflows for Radell Global Operations are shown below.

Actual
2016

2017
Projected
2018

2019
Free cash flow$602.40$663.08$703.13$759.38
(millions of dollars)

Growth is expected to be constant after 2018, and the weightedaverage cost of capital is 11.55%. What is the horizon (continuing)value at 2019 if growth from 2018 remains constant? Round youranswer to the nearest dollar. Round intermediate calculations totwo decimal places.

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Horizon Value of Free Cash Flows Current and projected free cashflows for Radell Global Operations are shown below.Actual20162017Projected20182019Free cash flow$602.40$663.08$703.13$759.38(millions of dollars)Growth is expected to be constant after 2018, and the weightedaverage cost of capital is 11.55%. What is the horizon (continuing)value at 2019 if growth from 2018 remains constant? Round youranswer to the nearest dollar. Round intermediate calculations totwo decimal places.

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