Current and projected free cash flows for Radell Global Operations are shown below.     Actual Projected   2019 2020 2021 2022 Free cash flow $601.740 $662.420 $702.467 $751.560 (millions of dollars)           Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.05%. What is the horizon (continuing) value at 2022 if growth from 2021 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.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 7P: Current and projected free cash flows for Radell Global Operations are shown here. Growth is...
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Current and projected free cash flows for Radell Global Operations are shown below.

 

  Actual Projected
  2019 2020 2021 2022
Free cash flow $601.740 $662.420 $702.467 $751.560
(millions of dollars)        

 

Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.05%. What is the horizon (continuing) value at 2022 if growth from 2021 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

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