Marbury Inc. owns several Newspapers and TV stations in the Southeast. Marbury plans to sell off its newspapers over the next two years and then will focus entirely on TV. In doing so, Marbury plans to have Cash Flows of $500 million this coming year, $300 million the following year, and then earn $100 million per year forever after that. Assuming a 7% discount rate, what is the DCF value of Marbury?
Marbury Inc. owns several Newspapers and TV stations in the Southeast. Marbury plans to sell off its newspapers over the next two years and then will focus entirely on TV. In doing so, Marbury plans to have Cash Flows of $500 million this coming year, $300 million the following year, and then earn $100 million per year forever after that. Assuming a 7% discount rate, what is the DCF value of Marbury?
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 11P
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Marbury Inc. owns several Newspapers and TV stations in the Southeast. Marbury plans to sell off its newspapers over the next two years and then will focus entirely on TV. In doing so, Marbury plans to have Cash Flows of $500 million this coming year, $300 million the following year, and then earn $100 million per year forever after that. Assuming a 7% discount rate, what is the DCF value of Marbury?
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