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Question 9 Not yet answered Marked out of 5.00 p Flag question Stock/company valuation: ABC is going public and you need to estimate the value

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Question 9 Not yet answered Marked out of 5.00 p 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%, what is the value of the equity? Select one: O A. 334,285,714.3 O B. 950,000,000 O C. 238,493.723.9

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