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Estimate the total equity value based on the following information about Company ABC: Year Projected CF to Equity (in USD million) 1 100 2 80
Estimate the total equity value based on the following information about Company ABC: Year Projected CF to Equity (in USD million) 1 100 2 80 3 90 4 150 5 200 The cash flow to equity is expected to grow at a constant rate of 1% after the end of fifth year, indefinitely. The cost of overall capital is 15% and the cost of equity capital is 10%. A. $1,745 million.
B. $1,845 million.
C. $1,895 million.
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