Free cash flow-what is the total value of the company

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Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be $7 million, at t = 2 will be $8.5 million, and at t = 3 will be $9.9 million. After Year 3, FCF is expected to grow at a constant rate of 4% forever. The firm also has $10 million in ST Investments and $120 million in debt. If the weighted average cost of capital is 15%, what is the total value of the company, in millions?

Reference no: EM131562808

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