(211) Valuation Vandells free cash flow (FCF0) is $2 million per year and is expected to grow...

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(21–1)

Valuation Vandell’s free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate of 5% a year; its beta is 1.4. What is the value of Vandell’s operations?

If Vandell has $10.82 million in debt, what is the current value of Vandell’s stock?

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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