Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2015, and the weighted average cost of capital is 11%. What is the horizon (continuing) value at 2016 if growth from 2015 remains constant? Show your work, step by step.
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Actual 2013
|
2014
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Projected 2015
|
2016
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Free Cash Flow
(millions of dollars)
|
$606.82
|
$667.50
|
$707.55
|
$750.00
|