Question
A company is planning to go public. The company has a WACC of 15%, and will generate a free cash flow of $44M in one
A company is planning to go public. The company has a WACC of 15%, and will generate a free cash flow of $44M in one year. The free cash flow is equal to operating cashflow minus the investment and expenditures required. After next year, the free cash flow will grow by 4%/year forever. Assume the company is financed with 70%equity. What is the value of the company's equity today?
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
