Question
Pinnacle Enterprises is expected to have next years free cash flow of $14 million. FCF is expected to grow at 5% per year into foreseeable
Pinnacle Enterprises is expected to have next years free cash flow of $14 million. FCF is expected to grow at 5% per year into foreseeable future. Pinnacles cost of equity capital is 15%, cost of debt is 8%, and it is in the 40% corporate tax bracket. Pinnacle currently maintains a 0.4 debt to equity ratio. What would be the value of Pinnacle as an all equity firm would?
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Finance For Real Estate Development
Authors: Charles Long
1st Edition
0874204305, 978-0874204308
