Question
Farahs Fashions (FF) is expected to have free cash flow in the coming year of $8 million which is expected to grow at 3% annually
Farahs Fashions (FF) is expected to have free cash flow in the coming year of $8 million which is expected to grow at 3% annually (in perpetuity). FFs cost of equity is 13%, cost of debt is 7%, D/E ratio is 0.5, and its tax rate is 35%. What is the required return on firm assets (round to tenth of percent)?
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
