Question
Given the following data Free cash flow= $3.0 million Expected constant growth = 6% Beta = 1.5 Tax rate = 40% Capital structure= 40% debt
Given the following data
Free cash flow= $3.0 million
Expected constant growth = 6%
Beta = 1.5
Tax rate = 40%
Capital structure= 40% debt
Interest rate on debt = 9%
Risk free rate = 5%
Market risk premium = 6%
2 million common shares outstanding
Total debt outstanding $15 million
The value of equity is
| a. | none of the answers listed | |
| b. | $50.11 million | |
| c. | $54.5 million | |
| d. | $36.56 million | |
| e. | $13.4 million |
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Enhancing Financial Inclusion Through Islamic Finance Volume II
Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag
1st Edition
3030399389,3030399397
