Question
A firm's unlevered cash flow is $120/year and its (levered) equity cash flow is $100/year. The unlevered cost of capital is 12%, the cost of
A firm's unlevered cash flow is $120/year and its (levered) equity cash flow is $100/year. The unlevered cost of capital is 12%, the cost of equity is 16.67% and the wacc is 10.91%. What is the value of the equity if all the cash flows are constant forever?
| $700 | ||
| $600 | ||
| $9000 | ||
| $500 | ||
| $800 |
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Canadian Public Finance
Authors: Genevieve Tellier
1st Edition
1487594410, 978-1487594411
