Current and projected
free cash flows for Radell Global Operations are shown below.
|
Actual
2016 |
2017 |
Projected
2018 |
2019 |
| Free cash flow |
$606.82 |
$667.50 |
$707.55 |
$750.00 |
| (millions of dollars) |
|
|
|
|
Growth is expected to
be constant after 2018, and the weighted average cost of capital is
11.15%. What is the horizon (continuing) value at 2019 if growth
from 2018 remains constant? Round your answer to the nearest
dollar. Do not round intermediate calculations.
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