Knappa valley

Previous Page Next Page Note: It is recommended that you save your response as you complete each question Question 12 (10 points) B Knappa Valley Winery's (KVW) most recent FCFF is $4.500.000. KVW's target debt-to-equity ratio is 0.25. The market value of the firm's debt is $10 million and KVW has 2 million shares of common stock outstanding. The firm's tax rate is 35%, the shareholders require a return of 15% on their investment, the firm's before-tax cost of debt is 8%, and the expected long-term growth rate in FCFF is 6%. Calculate the value per share of the equity O $31:49 $32.49 $33.49 $34.49 Sa Previous Page 12 of 20