What is the horizon value

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Horizon Value of Free Cash Flows Current and projected free cash flows for Radell Global Operations are shown below.

Actual Projected 2015 2016 2017 2018

Free cash flow $610.68 $671.36 $711.41 $768.32 (millions of dollars)

Growth is expected to be constant after 2017, and the weighted average cost of capital is 11.2%. What is the horizon (continuing) value at 2018 if growth from 2017 remains constant? Round your answer to the nearest dollar. Round intermediate calculations to two decimal places. Enter your answer in millions of dollars.

Reference no: EM13980773

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