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An investor is planning to value company A . After careful estimation of cash flows, he projects the following cash flows for the firm in
An investor is planning to value company A After careful estimation of cash flows, he projects the following cash flows for the firm in the following years as
Year : FCFF $
Year : FCFF $
Year : FCFF $
Year : FCFF $
Year : FCFF $
The risk free rate of return is equity risk premium market premium is Beta is For the terminal value, he assumes a perpetual growth rate of The corporate tax rate is and equity and debt is in equal proportion in the firm and the cost of debt borrowing is
Estimate the value of the firm.
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