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A company has a WACC of 6%. It has debt outstanding of 1,000. At the end of this year it will generate Free Cash Flows
A company has a WACC of 6%. It has debt outstanding of 1,000. At the end of this year it will generate Free Cash Flows to the Firm of 500. This amount will grow in perpetuity at 2% per year. What is the value of the entire firm? What is the value of the firms equity? If the firm has 200 shares outstanding, what is the value of one-share in this firm
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