Question
Question: ABC Co. has FCFF of $700 million. The weighted average cost of capital is 10.2%. FCFF is expected to grow forever at 5.0 percent.
Question: ABC Co. has FCFF of $700 million. The weighted average cost of capital is 10.2%. FCFF is expected to grow forever at 5.0 percent. ABC Co. has debt outstanding with a market value of $2.2 billion and has 200 million outstanding common shares. 1. What is the value of ABC Co. equity using the FCFF valuation approach? 2. What is the value per share using this FCFF approach?
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
