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Homework on valuation using WACC FCFF 1 = 1000 g=4% R f = 3% E(R m ) = 7% = 1.5 k d = 6%

Homework on valuation using WACC

FCFF1 = 1000

g=4%

Rf = 3%

E(Rm) = 7%

= 1.5

kd = 6%

tc = 20%

Proportion of debt in capital structure = 60%

Proportion of stock in capital structure = 40%

If the firm has 1000 share, find the fair value of a share of stock

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