BA350 Financial Management: 13-6 Brooks Enterprises has never paid a dividend

BA350 Financial Management 13-6 Value of Operations Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of capital is 12%. a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) b. Calculate the value of Brooks’s operations.