Kendra enterprises has never paid a dividend free cash flow


Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100.000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of capital is 12%.

What is the terminal, or horizon, value of operation? (Hint: find the value of all free cash flows beyond year 2 discounted back to year 2.)

Calculate the value of Kendra’s operations.

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Financial Management: Kendra enterprises has never paid a dividend free cash flow
Reference No:- TGS01085249

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