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Grand Rapids, Inc. FCF o = 53,571 FCF grows at a constant rate = 5.0% WACC = 12.50% S.T. Investments = 150,006 L.T. Debt =
Grand Rapids, Inc.
- FCFo = 53,571
- FCF grows at a constant rate = 5.0%
- WACC = 12.50%
- S.T. Investments = 150,006
- L.T. Debt = 300,000
Question: What is the Value of Equity of Grand rapids?
VOP = FCF1 (WACC gL)
VTotal = VOP + S.T. Investments
VEquity = VTot Debts
P0 = VEquity N
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