Question

The DCF value of the firm using the FCFF information above, a discount rate of 6%, and an expected terminal growth rate of 2%, is:__________.

Answer 1

Answer:

$176,900 million

Explanation:

Calculation for the DCF value of the firm

DCF value of the firm=$6,527/1.06 + $6,853/1.062 + $7,196/1.063 + $7,556/1.064 + ($7,707/(0.06 - 0.02))/1.064

DCF value of the firm= $176,900 million

Therefore the DCF value of the firm will be $176,900 million