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age.com/static/nb/ulevo/index.htm/2eISBN-97813373951208id 3415499358snapshotld-8815858 Bookmarks Course Materials eaHil Conect M Mcoraw.-Hill ConnectHomework MINDTAP to crate phet. rom Cengage End-of-Chapter Problems - Basic Stock Valuation ssignment: Ch 08: End-of-Chapter Problems - Basic Stock Valuation Q Search this course estions Submit Check My Work (a remaining) eBook O Horizon Value of Free Cash Flows O Current and projected free cash flows for Radell Global Operations are shown below. Actual Projected 2018 2019 2020 2021 $608.50 $669.18 $709.23 $751.78 Free cash flow (millions of dollars) Growth is expected to be constant after 2020, and the weighted average cost of apital is 11.2%, what is the horon (connig/keat 2aargeetom 2020 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000 Round your answer to the nearest whole number. million Check My Work (i remaining) 0 Icon KeExplanation / Answer
Horizon value at 2021=cash flow at 2020*(1+g)/(k-g)
751.78=709.23*(1+g)
g=6%
horizon value=751.78/(11.2%-6%)
=14457.31mn
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