Question
Assume JKL Corp. is a mature firm in a steady state. Using the assumptions below for JKL, what is the firm's current value (enterprise value):
Assume JKL Corp. is a mature firm in a steady state. Using the assumptions below for JKL, what is the firm's current value (enterprise value):
Free cash flow (cash flow to the firm) this year: $325,000
Cost of equity: 16.0%
Weighted average cost of capital (WACC): 12.0%
Expected free cash flow growth rate: 5.0%
$3,102,273
$4,875,000
$4,642,857
$2,843,750
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Payroll Accounting 2017
Authors: Bernard J. Bieg, Judith Toland
27th edition
ISBN: 1305675126, 1305675124, 9781305888586, 1305888588, 978-1337734776
