Compute value of the firm operations

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Wonka Confectioners most recent FCF was $48 million, which is expected to grow at a constant rate of 6%. The firm's WACC is 12% and it has 15 million shares of common stock outstanding. The firm has $30 million in short-term investments which it plans to distribute to common shareholders through a stock repurchase. The firm has no other non-operating assets. It has $368 million in debt and $60 million in preferred stock.

What is the value of the firm's operations?

 

Reference no: EM13108728

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