Problem:
Quicksilver Software Co. is expected to grow rapidly in the next three years and then have no growth for the foreseeable future. The firm expects free cash flows of $9.1 million, $11.4 million, and $17.7 million over the next three years, and thereafter its cash flows will stay constant. The company has no nonoperating assets.
Required:
Question: If the appropriate WACC is 12 percent and debt of 44.5 million, what is the equity value of this business?
Note: Please show guided help with steps and answer.