Problem:
Gupta corpation is undergoing a restructure and its FCF are expected to vary considerably during the next few years. However, the FCF is expected to be 45.00 million in year 5 and FCF growth rate is expected to be constant 6.5% beyond that point. The weighted average cost of capital is 12.0%.
Requirement:
Question: What is the horizon (or continuos) value (in millions) at t=5?
Note: Show all workings.