Ask Question
27 March, 09:12

What do you get when you calculate the present value of the free cash flow of the firm using this discount rate?

+3
Answers (1)
  1. 27 March, 13:05
    0
    To calculate the present value of a firm, first, determine the expected free cash flows over the specified time period. Next thing is to determine the present value factor for each year using the discount rate given. Next, multiply the respective discount factor by each year's cashflow. This will give you the Present value for each year. Lastly, sum up individual PVs to get the value of the firm.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What do you get when you calculate the present value of the free cash flow of the firm using this discount rate? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers