Akyol Corporation is undergoing a restructuring, and its free cash flows are expected to be unstable during the next few years. However, FCF is...

Akyol Corporation is undergoing a restructuring, and its free cash flows are expected to be unstable during the next few years. However, FCF is expected to be $50 million in year 5, i.e., FCF at t= 5 equals $50 million, and the FCF growth rate is expected to be constant at 6% beyond that point. If the weighted average cost of capital is 12%, what is the horizon value (in millions) at t=5?

Question:Akyol Corporation is undergoing a restructuring, and its free cash flows are expected to be unstable during the next few years. However, FCFis expected to be $50 million in year 5, i.e.,...