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Question 26 5 pts You are given the following information about corporation X a. The current capital structure of the corporation is 100% Equity b.
Question 26 5 pts You are given the following information about corporation X a. The current capital structure of the corporation is 100% Equity b. The company has a new target capital structure of 40% Equity and 60% debt. c. The company is currently able to borrow at 5%. d. The company's current beta is 1. e. Company's tax rate is 45% Risk-free is 5%. Market Risk Premium is 4%. f. For the upcoming year, the company is expected to generate FCF of $350, which has been growing at a constant rate of 3% g. The company's current number of outstanding common shares is 1000. There are no outstanding preferred shares at this time. What is the new intrinsic value of the stock following recapitalization
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