Question
Company has a FCFF of $45.5 million. The weighted average cost of capital is 12% and its required rate of return for equity is 8%.
Company has a FCFF of $45.5 million. The weighted average cost of capital is 12% and its required rate of return for equity is 8%. FCFF is expected to grow forever at 6% per year. Company has debt outstanding of $100 million. a) What is the total value of the equity? b) What is the value per share if company has 15 million shares outstanding?
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Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen
13th Edition
0073382388, 978-0073382388
