Question
A firm is expected to grow in perpetuity at a rate of 5%. If the next year free cashflow expected is 20 million, the cost
A firm is expected to grow in perpetuity at a rate of 5%. If the next year free cashflow expected is 20 million, the cost of equity is 15%, cost of debt is 8% and the target debt to equity ratio is 1, then what is the value of this firm today if the tax rate is 20%?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
