Question
Consider the following information about the company: Current FCFF: 7,000 Target Debt to Capital: .55 Shares Outstanding: 2,000 Cost of Debt: 7% Required Return on
Consider the following information about the company:
Current FCFF: 7,000
Target Debt to Capital: .55
Shares Outstanding: 2,000
Cost of Debt: 7%
Required Return on Equity: 11%
Market Value of Debt: 40,000
Long-term Growth in FCFF: 4%
Tax Rate: 40%
What is the intrinsic value per share of this company?
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
8th Edition
0814406807, 978-0814406809
