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In the most recent fiscal year, a company reported net income of $ 8 5 0 million after incurring $ 3 2 0 million in
In the most recent fiscal year, a company reported net income of $ million after incurring $ million in interest expenses. The corporate tax rate was That year, it reported a $ million depreciation and $ billion in capital spending. The company also had $ billion in debt outstanding, was rated AA with an percent yield to maturity and was trading at par. The stock's beta is and there were million outstanding shares trading at $ each with a book value of $ billion. Union Pacific paid out of its earnings as dividends, and working capital requirements are minimal. The Treasury bond rate is and market risk premium is a Estimate the FCFF for the most recent financial year. Showcalculations of each of the following: EBIT FCFFb Estimate the value of the firm now.Show calculations of each of the following: Reinvestment rate ROC Growth rate Cost of equity Cost of capital Value of the firmc. Estimate the value of equity.d Estimate the value per share.
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