Question
A firm has unlevered beta of 1.1, and now its debt-to-equity ratio is 0.4. What is the levered beta assuming the tax rate is 40%?
A firm has unlevered beta of 1.1, and now its debt-to-equity ratio is 0.4. What is the levered beta assuming the tax rate is 40%?
Using WACC to discount free cash flows, one gets the value of the firm. True or False?
Suppose beta is 1.2, the risk-free rate is 3%, market risk premium is 5%, before tax cost of debt is 6%, tax rate is 40%, and the firm's debt to equity ratio is 0.5, what is WACC?
A firm has EBIT of 100 million, depreciation of 15 million, a tax rate of 40%, a change in net working capital of 3 million, and capital expenditure of 20 million, what is the free cash flow?
Suppose this free cash flow grows at 3% per year forever, and the WACC is 8%, what is the firm value?
If this firm has outstanding debt of 150 million, what is the equity value of the firm?
Suppose a firm has a free cash flow of equity of 100 million per year indefinitely, and its cost of equity is 10%, what is the equity value of this firm?
If this firm has outstanding debt of 250 million, what is the firm value?
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