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on Proust Company has FCFF of $1.9 billion and FCFE of $1.6 billion. Proust's WACC is 12 percent, and its required rate of return for
on Proust Company has FCFF of $1.9 billion and FCFE of $1.6 billion. Proust's WACC is 12 percent, and its required rate of return for equity is 15 percent. FCFF is expected to grow forever at 6.5 percent, and FCFE is expected to grow forever at 6 percent. Proust has debt outstanding of $20 billion. What is the value of stock based on FCFF model? Select one: A. $16.79 OB. $34.22 OC. $14.55 OD. $30.91 Clear my choice
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Introduction To Management Accounting
Authors: Charles T. Horngren, Gary Sundum, Gary L. Sundem
8th Edition
