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FinCorps free cash flow to the firm is reported as $205 million. The firms interest expense is $22 million. Assume the corporate tax rate is
FinCorps free cash flow to the firm is reported as $205 million. The firms interest expense is $22 million. Assume the corporate tax rate is 21% and the net debt of the firm increases by $3 million. What is the market value of equity if the FCFE is projected to grow at 3% indefinitely and the cost of equity is 12%?
FinCorps free cash flow to the firm is reported as $205 million. The firms interest expense is $22 million. Assume the corporate tax rate is 21% and the net debt of the firm increases by $3 million. What is the market value of equity if the FCFE is projected to grow at 3% indefinitely and the cost of equity is 12%?
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
978-0132148238
