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Calculate FCF for years 1 ~ 5, respectively. Please show work You are given the following assumptions for Firm A. Assume that the firm is
Calculate FCF for years 1 ~ 5, respectively. Please show work
You are given the following assumptions for Firm A. Assume that the firm is going into leveraged buyout and the market value debt and equity levels are shown below. Assume from year 6 and onward, the debt level remains constant at $40 million, and equity level constant at $120 million, 2 cost of debt (kd) constant at 6%, and levered cost of equity (ke) constant at 16%. Use the Adjusted Present Value model and the appropriate assumption for ktxa to find the value of firm (V). (Round to 4 decimal places, e.g., 1.2345.) (30 points total) Given 5-year Forecasting Horizon, Corporate tax rate =38%, NOPLAT at time 1=$115M, Depreciation at time t= NOPLAT at time t12%, and Net investment at time t=(gt/ROICt) NOPLAT t+ Depreciation tStep by Step Solution
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