Question
FinCorps free cash flow to the firm is reported as $230 million. The firms interest expense is $32 million. Assume the tax rate is 35%
| FinCorps free cash flow to the firm is reported as $230 million. The firms interest expense is $32 million. Assume the tax rate is 35% and the net debt of the firm increases by $9 million. What is the market value of equity if the FCFE is projected to grow at 4% indefinitely and the cost of equity is 14%? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) |
| Market value | $ million |
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Credit Spreads Beginners Guide To Low Risk Secure Easy To Manage Consistent Profits For Long Term Wealth Creation
Authors: Casey Boon
1st Edition
1974677419, 978-1974677412
