Prepare a valuation report for electronix inc

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Reference no: EM133189980

Question - Electronix Inc. manufactures electronic products. The company's weighted average cost of capital is 8 percent. The company forecasted the following free cash flows for the next 20 years:

Year

Free Cash Flows

1

$15,000,000

2

$16,200,000

3

$21,000,000

4

$23,000,000

5

$27,000,000

6-10

$25,000,000 per year

11-20

$21,000,000 per year

Required -

1. Prepare a valuation report for Electronix Inc. using the discounted cash flow approach.

2. What accounts are taken into consideration in the discounted cash flow method?

Reference no: EM133189980

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