Question
MANU has a market cap of $ 100 million and debt of $ 40 million. MANU wishes to maintain the same capital structure in the
MANU has a market cap of $ 100 million and debt of $ 40 million. MANU wishes to maintain the same capital structure in the future. The corporate tax rate is 33%. If the free cash flow forecasted by MANU for next year are $ 7 million and their expected growth every year is 3% perpetually, what is the after-tax weighted average cost of capital (WACC) of the MANU business?
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The Wall Street Journal Complete Personal Finance Guidebook
Authors: Jeff D. Opdyke
1st Edition
030733600X, 978-0274804573
