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An analyst is reviewing the following data with respect to York Co.: 5 million shares outstanding Market risk premium is 6% Debt to total capital
An analyst is reviewing the following data with respect to York Co.:
- 5 million shares outstanding
- Market risk premium is 6%
- Debt to total capital ratio is 30%
- Risk-free rate is 3%
- York Co beta is 0.92
- Long term debt of $215 million has an interest cost of 7%
- Tax rate is 40%
- Current free cash flow to the firm (FCFF) is $24 million
- FCFF is expected to grow 21% over the next two years, 17% in the third year,
- And thereafter, grow at a constant rate of 3%
What is best estimate the total value of the firm? |
What is the WACC?
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