FinCorps free cash flow to the firm is reported as $205 million. The firms interest expense is

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FinCorp’s free cash flow to the firm is reported as $205 million. The firm’s interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increases by $3 million. What is the market value of equity if the FCFE is projected to grow at 3%

indefinitely and the cost of equity is 12%?

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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