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Question 6 5 pts A company has one-year, zero-coupon debt outstanding with face value $83 million. The company's current market value of equity is $100
Question 6 5 pts A company has one-year, zero-coupon debt outstanding with face value $83 million. The company's current market value of equity is $100 million. The firm will experience a free cash flow at year 1 and no further free cash flows. The free cash flow will be $222 million with probability 70% and $140 million with probability 30%. What is the equity cost of capital? Report a percentage with one digit after the decimal, e.g., 12.1 for 12.1%
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