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Netglobe Ltd is a well established company providing telecommunications services. An analyst has collected the...

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Finance

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Netglobe Ltd is a well established company providing telecommunications services. An analyst has collected the following information and wants to estimate the enterprise value of Netglobe using the discounted free cash flow (FCF) model: - Netglobe's FCF was $16 million in year 0 (historical FCF in the year just passed). - Netglobe expects its FCF to grow by 5% per year for the next three years (in year 1, year 2 and year 3 ). - Netglobe expects its FCF to grow by 3% per year indefinitely thereafter. - Assume all cash flows occur at the end of the year. - The cost of equity is 15%. - The cost of debt is 6%. - The weighted average cost of capital is 12%. Using the discounted free cash flow model and the information above, the the enterprise value of Netglobe is $ million. Note: Please provide your answer with two decimal points in $ million in the format of xx.xx (for example, if the answer is $12.34 million, type in 12.34)

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