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Question ) The free cash flows to the firm ( FCFF ) today are equal to $ 5 0 million and investors expect them to

Question) The free cash flows to the firm (FCFF) today are equal
to $50 million and investors expect them to grow at a constant
growth rate of 5%. If the market value of the debt is $50 million,
the cash holdings are equal to $150 million and the cost of capital
(or WACC) is 10%. What is the market value of equity using the free
cash flow valuation approach?

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