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Petty Comp is comprised of 50% equity and 50% debt. The cost of equity is 14%, and the cost of debt is 10%. The companys
Petty Comp is comprised of 50% equity and 50% debt. The cost of equity is 14%, and the cost of debt is 10%. The companys Free Cash Flow equals 11.25 million, and its tax rate is 15%. Petty Comp is a zero-growth stock. What is its current value of operations (to the nearest dollar)?
A) $118 million B) $100 million C) $94 million D) $110 million
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