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Old 12-12-2009, 11:00 PM
maarja maarja is offline
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Join Date: Dec 2009
Location: Estonia
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Default the theoretical value of a company

I have a question about finding the theoretical value of a cyclical company when I have the following data: one business cycle lasts 4 years (the free cash flow at the end of the the first year is 5 millions, 2nd year -3 mln, 3rd year 12 mln and the 4th year it's 4 mln; and then it starts all over again and the company runs perpetually). The discount rate is 10% in a year.

I would be extremely grateful if anybody could help me.
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