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20. The free cash flow to the firm in the year jus...

Description

Solution


Question

20. The free cash flow to the firm in the year just ended was $195 million. The interest expense to the firm was $28 million. If the tax rate is 35% and the net debt of the firm increased by $35 million, what is the market value of the firm's equity if the FCFE grows at 10% for the next 3 years and then at a constant rate of 4% thereafter? The firm's cost of equity is 12%.

 

Paper#2539 | Written in 18-Jul-2015

Price : $25
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