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Homework: Homework 6 (Suggested Due Date 11/08) Question 2 P15-14 (simi... Puto 2 HW Score: 25%, 25 of 100 points Points of 25 Restex has
Homework: Homework 6 (Suggested Due Date 11/08) Question 2 P15-14 (simi... Puto 2 HW Score: 25%, 25 of 100 points Points of 25 Restex has a dobiequity ratio of 0.96, an equity cost of capital of 13%, and a dat cost of capital of 0% Reseorporate tax rate is 21%, and market caption is $20 milion a. Rester's free cash flow is expected to be 56 milion one year from now and wil grow at constant rate, what expected Mure growth rate consistent with Reex's current mane? b. Intimate the value of Rolex's interest tax shield 1. Restex's tree cash flow is expected to be $6 million one yew from now and will grow at a constant role, who expected future grows tales consistent with Reste's current meat value? i Rostox's free cash flow is expected to be 36 milion in one year, the expected future growth (Round to two decimal pract)
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