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Please answer questions 10-14 Use the following information for Questions 10 14. A firm has provided you with the following financial data: Free Cash Flow
Please answer questions 10-14
Use the following information for Questions 10 14. A firm has provided you with the following financial data: Free Cash Flow to the Firm (FCFF) at t=1 $10,000,000, Target Debt/Equity Ratio 0.40 Market value of debt $20,000,000 Required return on equity 149 Cost of debt 896 Tax Rate 30% Long run growth rate in FCFF 4% Number of shares outstanding 4,000,000 10. What is the firm's proportion of debt in the capital structure? 040% 036% 029% 25% ONone of the above are correct solutions 11. What is the firm's WACC? 012.3% 011.6% 011.096 10.8% ONone of the above are correct solutions 12. What is the value of the firm? 05131,578,947 05122, 198,221 OS110,866,542 O$108,886,940 None of the above are correct solutions 13. What is the value of the firm's equity? OS111,578,947 O$102,198,221 O$90,866,542 O$88,886,940 None of the above are correct solutions 14. What is the value of a common stock? O$25.55 $22.72 $27.89 $22.22 ONone of the above are correct solutionsStep by Step Solution
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