“Value of Firm (Given WACC, Indefinite Growth Rate)”,”1. Calculate final year Terminal Cash Flow (TCF)TCF = (FCFF Final Year x 1.04)/(.10-.04)
if WACC were 10% & growth rate was 4% per year indefinitely.2. (FCFF/1.WACCYr1)…+({FCFF + TCF}/1.WACCFinalYR) = Value of Firm**Discount and Add to get ValueFV = FCFFN = YearI = WACC % RatePV = Solve for ?”