Question
Sport L&K Company produces annual cash flows of $830 dollars and is expected to exist forever. The company is currently financed with 74 percent equity.
Sport L&K Company produces annual cash flows of $830 dollars and is expected to exist forever. The company is currently financed with 74 percent equity. Your analysis tells you that the appropriate discount rates are 11.35 percent for the cash flows, and 5.00 percent for the debt. You currently own 8 percent of the shares.
Assume that all conditions identified by the M&M Proposition 1 apply.
How much are your cash flows today?
Round the answer to two decimals. Please enter the answer in thousands.
Your Answer:
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Financial Times Handbook Of Corporate Finance A Business Companion To Financial Markets Decisions And Techniques
Authors: Glen Arnold
2nd Edition
0273726560, 978-0273726562
