Question
Present value of after-tax free cash flows $1,100 Market value of Long Term Debt $600 Shares Outstanding 100 Using the DCF approach, the fair share
Present value of after-tax free cash flows
$1,100
Market value of Long Term Debt
$600
Shares Outstanding
100
Using the DCF approach, the fair share price would be:
A. 11.00
B. $9.00
C. $7.00
D. $5.00
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
