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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 11P

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