Question
Company B's free cash flow (before interest expenses) is 100 cash the following year. From this it will grow by 2% year on year for
Company B's free cash flow (before interest expenses) is 100 cash the following year. From this it will grow by 2% year on year for the next five years. After that, growth is expected to continue (forever) at one percent. Calculate the value of a company's equity using the weighted cost of capital (WACC) of company A.
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Mergers Acquisition And Other Restructuring Activities
Authors: Donald M. Depamphilis
6th Edition
123854857, 978-0123854858
