Question
A firms current FCF is $9 million. Assume the FCF is expected to grow by 10% for 3 years, 8% for 1 year, and then
A firms current FCF is $9 million. Assume the FCF is expected to grow by 10% for 3 years, 8% for 1 year, and then by a constant rate of 4% thereafter. Assume the firms wacc = 7%, the value of its debt is $170 million, and it has 3 million shares of common stock outstanding. Calculate V0 and P0.
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Financial Markets And Institutions
Authors: Jeff Madura
9th Edition
1439038848, 978-1439038840
