Question
ONEFUN is a so-called all-equity company. This company has invested in only one project called LIVE. This project LIVE has expected 2 million dollar cash
ONEFUN is a so-called all-equity company. This company has invested in only one project called LIVE. This project LIVE has expected 2 million dollar cash flow (after-tax) one year from now. This cash flow is expected to grow 1% annually forever.
- the risk-free rate of return = 2%
- expected market return = 8%
- project beta = 1.5
REQUIRED: Calculate the value of the firm ONEFUN
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
