What is the terminal or horizon value of operations.
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11-Jul-23
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Calculate the value of operations
Brooks Enterprises has never paid a dividend. Free cash flow is projected to be 95 million and 125 million for the next two years. After the second year, FCF is expected to grow at a constant rate of 10.5%. The company`s WACC is 14.75%.
a. What is the terminal or horizon value of operations.
b. Calculate the value of Brook`s operations.