Find what is firm value of operations for zhdanov inc

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Problem 1: Zhdanov, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$15 million (negative), but its FCF at t = 2 will be $30 million. After Year 2, FCF is expected to grow at a constant rate of 3% forever. If the weighted average cost of capital is 16%, what is the firm's value of operations, in millions?

Reference no: EM132702042

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