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Additional Valuation Assumptions: Interest rate on debt capital 6.00% Tax rate 25.00% Cost of equity capital 14.00% Terminal growth rate in cash flows 3.00% Free
| Additional Valuation Assumptions: | ||
| Interest rate on debt capital | 6.00% | |
| Tax rate | 25.00% | |
| Cost of equity capital | 14.00% | |
| Terminal growth rate in cash flows | 3.00% |
| Free Cash Flows to Equity for 18-20 |
| 2018 | 2019 | 2020 |
| 8,120 | 14,024 | 15,295 |
1.) Using your Free Cash Flows to Equity calculated above, determine the Value of Equity as of December 31, 2017 using a MULTI-PERIOD model.
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The Wall Street Journal Complete Personal Finance Guidebook
Authors: Jeff D. Opdyke
1st Edition
030733600X, 978-0274804573
