The following are the projected cash flows to the firm over the next five years:    Year Cash Flows to the Firm  (Million)  1 $120 2 $145 3 $176 4 $199 5 $245 The firm has a cost of capital (WACC )of 12% and the cash flows are expected to grow at the rate of 4% in perpetuity?  a) What is the value of the firm today? b) At what growth rate will the firm have a value of $3000 Million? Show your work in excel and attach the excel file.  Please show all calculations with the formulas in the excel sheet

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 11P: Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors...
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The following are the projected cash flows to the firm over the next five years: 

 

Year Cash Flows to the Firm  (Million) 
1 $120
2 $145
3 $176
4 $199
5 $245

The firm has a cost of capital (WACC )of 12% and the cash flows are expected to grow at the rate of 4% in perpetuity? 

a) What is the value of the firm today?

b) At what growth rate will the firm have a value of $3000 Million?

Show your work in excel and attach the excel file. 

Please show all calculations with the formulas in the excel sheet

 
 
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