wwwgr78
wwwgr78
08.04.2021 • 
Business

Acme Inc. is expected to generate a free cash flow (FCF) of $13,125.00 million this year (FCF₁ = $13,125.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Acme Inc.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Acme Inc.? (Note: Round all intermediate calculations to two decimal places.)

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