Business
Business, 24.04.2020 19:49, xxwoolyknightxx

Acme Corp. is expected to generate a free cash flow (FCF) of $13,640.00 million this year (FCF₁ = $13,640.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Acme Corp.’s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of Acme Corp.? (Note: Round all intermediate calculations to two decimal places.)

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Acme Corp. is expected to generate a free cash flow (FCF) of $13,640.00 million this year (FCF₁ = $1...

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