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Question 1: You are planning to value Nanotech Corp., a US technology company. You are planning to use a single-stage FCFF approach. You have collected
Question 1: You are planning to value Nanotech Corp., a US technology company. You are planning to use a single-stage FCFF approach. You have collected the financial information below: 2.5%. The company has 10 million shares outstanding. The market value of debt is $350 million. The FCFF is currently $20 million The equity beta is 1.77; the equity risk premium is 5.4%; the risk-free rate The before-tax cost of debt is 6.0%. The tax rate is 21.0%. The company is financed 25% with debt. The FCFF growth rate is 8.0%. Use the financial information above, and calculate: a) WACC b) Firm value. c) Equity value d) Equity value per-share
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