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A. Determine the weighted average cost of capital. B. Using the cash flow capitalization approach, estimate the company value. The company's financials are given in
A. Determine the weighted average cost of capital. B. Using the cash flow capitalization approach, estimate the company value.
The company's financials are given in the table below: Before-tax cost of debt 6% Cost of equity 12% Corporate income tax rate 30% Target capital structure: Debt: 40%. Equity: 60% Current free cash flow $25,000 Long-term constant growth rate in free cash flow 4.5%Step by Step Solution
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