Question
ABC Inc. will generate a one time free cash flow of $40,500,000 in one years time. The company has a debt/equity ratio of 2.0. The
ABC Inc. will generate a one time free cash flow of $40,500,000 in one years time. The company has a debt/equity ratio of 2.0. The companys unlevered cost of equity is 8.5%. There are no taxes and no other imperfections. What is the value of the equity today? Your answer should be accurate to two decimal places.
Answer: $12,442,396.31
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
