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Do Pham is evaluating Phaneuf Accelerateur by using the FCFF and FCFE valuation approaches. Pham has collected the following information (currency in euro): Phaneuf has
Do Pham is evaluating Phaneuf Accelerateur by using the FCFF and FCFE valuation approaches. Pham has collected the following information (currency in euro): Phaneuf has EBIT of 507 and net income of 250 market value of Phaneuf's outstanding debt is 2,000 million.. FCFF is expected to grow at 6.0 percent indefinitely, and FCFE is expected to grow at 7.0 percent. The tax rate is 30 percent. Phaneuf will be financed with 40 percent debt and 60 percent equity. The before-tax cost of debt is 9 percent, and the valuation approach, estimate the total value of the firm, the total market value of equity, and the per-share value of equity. B. Using the FCFE valuation approach, estimate the total market value of equity and the per-share value of equity
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