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Question 8 Not yet answered Marked out of 5.00 Flag question Stock/company valuation: ABC is going public and you need to estimate the value of

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Question 8 Not yet answered Marked out of 5.00 Flag question Stock/company valuation: ABC is going public and you need to estimate the value of its equity. Debt is at 40% of present value. There will be no change in the capital structure of the company. Debtholders demand 7% and shareholders demand 12%. Corporate Tax is at 30%. Free cash flow is 39 million and is expected to grow in perpetuity by 5% per year. If WACC is 12%, find the total value of the company. Select one: o A. 557,142,857.1 O B . 800,000,000 C. 200,000,000 o

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