accounting

vestment analyst. Based on an The valuation of Hansel Limited has been done by an investment analyst expected free cash flow of 54 lakhs for the following year and an expe of 9 percent, the analyst has estimated the value of Hansel Limited to be 1800 4 However, he committed a mistake of using the book values of debt and equity. The book value weights employed by the analyst are not known, but you know het Hansel Limited has a cost of equity of 20 percent and post tax cost of debt of 10 percet The value of equity is thrice its book value, whereas the market value of its debtis nine tenths of its book value. What is the correct value of Hansel Ltd? growth ra