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. 6. You are planning to value Watson Inc. and you have the following information: The company has 1.852 million shares outstanding. The market value
. 6. You are planning to value Watson Inc. and you have the following information: The company has 1.852 million shares outstanding. The market value of its debt is $3.192 billion. FCFF is currently $1.1559 billion Beta is 0.90, the risk premium is 5.5%, and the risk-free rate is 5.5%. The before-tax cost of debt is 7%. The tax rate is 40%. The company has a capital structure of 25% debt and 75% equity. The FCFF growth rate is 4% and is expected to remain constant. . a. What is the WACC? b. What is the value of the firm? c. What is the total market value of equity? d. What is the value per share
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