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Please respond to all parts completely, clearly, and correctly. Please show all work and let all final answers be shown clearly. Questions 13&15. Will thumbs
Please respond to all parts completely, clearly, and correctly. Please show all work and let all final answers be shown clearly. Questions 13&15. Will thumbs up if ALL parts are correct! thanks!
3. FinCorp's free cash flow to the firm is reported as $205 million. The firm's interest expense is $22 million. Assume the tax rate is 35% and the net debt of the firm increases by $3 million. What is the market value of equity if the FCFE is projected to grow at 3% indefinitely and the cost of equity is 12% ? (LO134) 5. The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 1.5 . If the dividend per share expected during the coming year, D1, is $2.50 and g=4%, at what price should a share sell? (LO 13-2) Step by Step Solution
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