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ABC Corporation has free cash flow to equity of $240 million this year, and it is expected to grow at a constant rate of
ABC Corporation has free cash flow to equity of $240 million this year, and it is expected to grow at a constant rate of 3% in the futre. Its cost of equity is 10% and its cost of capital is 7%. It has debt $120 million. The number of shares outstanding is 100 million. The share price is $ The firm value is per share. million.
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To find the share price and the firm value we can use the following formulas Free Cash Flow to Equit...
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
