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Cagiati Enterprises has Free Cash Flow to Firm ( FCFF ) of 7 0 0 million Swiss francs ( CHF ) and FCFE of CHF

Cagiati Enterprises has Free Cash Flow to Firm (FCFF) of 700 million Swiss francs (CHF) and FCFE of CHF620 million. Cagiatis before-tax cost of debt is 5.7 percent, and its required rate of return for equity is 11.8 percent. The company expects a target capital structure consisting of 20 percent debt financing and 80 percent equity financing. The tax rate is 33.33 percent, and FCFF is expected to grow forever at 5.0 percent. Cagiati Enterprises has debt outstanding with a market value of CHF2.2 billion and has 200 million outstanding common shares.a)What is Cagiatis weighted average cost of capital?b)What is the value of Firm (Cagiati)?c) What is the equity value of Cagiati?

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