Question

Target Corp generated $10 billion of Operating Cash Flow last year while spending $6 billion on...

Target Corp generated $10 billion of Operating Cash Flow last year while spending $6 billion on investments in Fixed Assets (capital expenditures) and an additional $0.5 billion on increases in Working Capital. You expect Free Cash Flow to grow by 15% for the next two years and then grow at 4% annually, forever. You require a 15% expected annual return on your investment in Target.
Estimate the value of Target using a discounted cash flow analysis, assuming that Target has no debt outstanding.

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