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HomeNet Inc is a firm that specializes in domestic networking systems. HomeNet has a stock price of 25 per share with 16 million shares outstanding.
HomeNet Inc is a firm that specializes in domestic networking systems. HomeNet has a stock price of 25 per share with 16 million shares outstanding. HomeNets equity beta is 1.18. It also has 220 million in debt outstanding with a debt beta of 0.08. The risk-free rate is 3%, and the market risk premium is 6%. Suppose that the free cash flow of the Homenet is 450 million for the next year and it is expected to grow at a rate of 4%. What is the value of HomeNet Inc?
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