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Wacc calculation questions for fund examination
2.? Enterprise value = fcff1/(WACC-4%) = (2500 * (1+4%) * (1-33%)-7500 * (1+4%)+7500.

1.?

According to these two formulas, the value of the company in 20 13 years is 253.79/(0.0822-0.07)=20802.46.

PV = 20802.46/( 1+0.0822)5 = 140 14.48。 This PV plus the PV of FCFF in previous years should be the PV obtained.

Here are some explanations about PV and enterprise value, which you can have a look at. Thank you for letting me learn a lot about enterprise value calculation:)

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