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A company has net inflows of 10 mil,11 mil, 15 mil,20 mil and 22 mil for the next 5 years. It book value today is
A company has net inflows of 10 mil,11 mil, 15 mil,20 mil and 22 mil for the next 5 years. It book value today is 5 millions. The company has issuede 5000 bonds with annual interest rate of 2%, nominal value of 1000 for each of the bond and maturity 5 years. If the market interest is 3%, which is the value of the company, of the bond, and of the equity??
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