Response to the following problem:
Current and projected free cash flows for Radell Global Operations are shown below. Growth is expected to be constant after 2008. The weighted average cost of capital is 11 percent. What is the horizon, or continuing, value at 2008?
Actual PROJECTED
2006 2007 2008 2009
Free cash flow (millions of dollars) $606.82 $667.50 $707.55 $750.00