Question
1. Here are the forecast FCFE in the first four years. 1 2 3 4 5 FCFE per share .09 1.08 1.296 1.732 2.15 The
1. Here are the forecast FCFE in the first four years.
| 1 | 2 | 3 | 4 | 5 | |
| FCFE per share | .09 | 1.08 | 1.296 | 1.732 | 2.15 |
The long-run growth rate of FCFE after year 5 is 3%.
Beta is 1.40; the risk-free rate of return is 8 percent; the equity risk premium is 5.25 percent
What is the equity value per share?
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
3rd Edition
0321541642, 9780321541642
