Question
A company reports operating cash flows of $100,000 and net capital expenditures of $50,000. Its net new borrowing over the last year was $10,000. It
A company reports operating cash flows of $100,000 and net capital expenditures of $50,000. Its net new borrowing over the last year was $10,000. It paid interest of $9,000. Its tax rate was 20%.
The company's stock beta is 2. The riskfree rate is 4% and the equity risk premium is 10%. The company's WACC is 9%. Its ROE is 8% and the company retains 80% of net income.
What is the total enterprise value (TEV) of the firm, using the stable growth model?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
