To calculate the present value of all the future FCFF that a firm will enjoy by owning it forever, we need to use the present discounted value (PDV) formula. This formula takes into account the time value of money and involves applying the PDV formula for each time period when a benefit is received, then adding up all the present values to get the final answer.
To calculate the present value of all the future FCFF (Free Cash Flow to the Firm) that a firm will enjoy by owning it forever, we need to use the present discounted value (PDV) formula. This formula takes into account the time value of money, which means that money received in the future is worth less than the same amount received today. We apply the PDV formula for each time period when a benefit is received and then add up all the present values to get the final answer.
Next, we divide the PDV of the total future FCFF by the number of shares to get the value per share. Finally, we report the answer to three decimal places.