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Imagine that your firm has an expected FCF of $X next year. You also expect that the FCFs will grow 2 % each year indefinitely.
Imagine that your firm has an expected FCF of $X next year. You also expect that the FCFs will grow each year indefinitely. Your firms capital structure is twothirds equity and onethird debt while the cost of equity and cost of debt are and respectively. The corporate tax rate is If the PV Interest Tax Shield is $M what is the value of X ie first years FCF
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