JenBritt Incorporated had a free cash flow (FCF) of $80 million in 2019. The firm projects FCF of $200 million in 2020 and $500 million in 2021. FCF is expected to grow at a constant rate of 4% in 2022 and thereafter. The weighted average cost of capital is 9%. What is the current (i. e., beginning of 2020) value of operations

Value of Op. $8,635.04 (Millions)

Explanation:

The value of operatins will be the present value of the expected cash flow

we discount 2020 ad 2021 cash flow as lump sum using the WACC of 9%

Then, for the subsequent year we use the gordon model:

As this is in the future we also have to discounted,

#CashflowDiscounted

1200183.49

2500420.84

35208030.71

Value of Op. 8635.04

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

because she sucked. : )

(but so does trump, don't @ me)