Find the value of kendras operations

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Reference no: EM131965631

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 9%. The company's weighted average cost of capital is 14%.

1. What is the terminal, or horizon, value of operations?

(Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest cent. $

2. Calculate the value of Kendra's operations.

Round your answer to the nearest cent. Do not round intermediate calculations.

Reference no: EM131965631

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