Horizon Value of Free Cash Flows JenBritt Incorporated had a free cash flow (FCF) of $78 million in 2023. The firm projects FCF of $255 million in 2024 and $590 million in 2025. FCF is expected to grow at a constant rate of 4% in 2026 and thereafter. The weighted average cost of capital is 8%. What is the current (i.e., beginning of 2024) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places. ta 13001.89 million

Horizon Value of Free Cash Flows JenBritt Incorporated had a free cash flow (FCF) of $78 million in 2023. The firm projects FCF of $255 million in 2024 and $590 million in 2025. FCF is expected to grow at a constant rate of 4% in 2026 and thereafter. The weighted average cost of capital is 8%. What is the current (i.e., beginning of 2024) value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places. ta 13001.89 million

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 7P: Current and projected free cash flows for Radell Global Operations are shown here. Growth is...

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