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QUESTION 41 A divorcee engaged you for a valuation of the couple's joint business in which they are equal partners, and from which s/he now
QUESTION 41 A divorcee engaged you for a valuation of the couple's joint business in which they are equal partners, and from which s/he now wants to quit the business. You value the entire business at 510,000,000. The business has external debt of $4,000,000. Operating Cash inflows of $3,000,000 and Operating Cash outflows of $1,000,000 for the most recent year. The expected Growth Rate is 5%. Required Rate of Return is 25, and all Risk Premia add up to 10%. What is the Risk Free Rate? 5% O 1096 O 150 O 2016
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