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just need to see the correct math behind the questions. I posted it earlier and the math wasn't right Use the following information about HCB
just need to see the correct math behind the questions. I posted it earlier and the math wasn't right
Use the following information about HCB Inc. for the next 6 questions. HCB has no non-operating assets. \begin{tabular}{|c|c|c|c|} \hline \multirow[b]{2}{*}{ Year } & \multirow[b]{2}{*}{ Now } & \multicolumn{2}{|c|}{ Projected } \\ \hline & & 1 & 2 \\ \hline Debt & 20 & 30 & 35 \\ \hline FCF & 5 & 7 & 10 \\ \hline Interest rate on debt & 6% & & \\ \hline Tax rate & 40% & & \\ \hline & 10% & & \\ \hlineru (Unlevered cost of equity) & 9% & & \\ \hline WACC & 8% & & \\ \hline Growth rate & 4% & & \\ \hline \end{tabular} 3. Calculate the value of equity using the Free Cash Flow to Equity Model. a. $222.65 b. $233.79 c. $245.48 d. $257.75 e. $270.64 4. Calculate the value of equity using the APV Model. a. \$153.01 b. $160.66 c. $168.69 d. $177.13 e. $185.98Step by Step Solution
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