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Questions 18-21 are based on the following information. 5 point each, total 20 points Watson Dunn is planning to value BCC Corporation, a provider of

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Questions 18-21 are based on the following information. 5 point each, total 20 points Watson Dunn is planning to value BCC Corporation, a provider of a variety of industrial metals and minerals. Dunn uses a single-stage FCFF approach. The financial information Dunn has assembled for his valuation is as follows The company has 1,852 million shares outstanding. o o o o The market value of its debt is $3.192 billion. The FCFF is currently $1.1559 billion. The equity beta is 0.90: the equity risk premium is 5.5 percent; the risk-free rate is 5.5 percent. o The before-tax cost of debt is 7.0 percent. o The tax rate is 40 percent. o To calculate WACC, he will assume the company is financed 25 percent with debt. o The FCFF growth rate is 4 percent. Using Dunn's information, calculate the following: 18. WACC. (5 points) 19. Value of the firm. (5 points) 20. Total market value of equity. (5 points) 21. Value per share. (5 points)

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