Question
St. Blues Technologies' expected (next year) EBIT is $292.00, its tax rate is 40%, depreciation is $18.00, planned capital expenditures are $80.00, and planned INCREASES
- St. Blues Technologies' expected (next year) EBIT is $292.00, its tax rate is 40%, depreciation is $18.00, planned capital expenditures are $80.00, and planned INCREASES in net working capital is $24.00.
What is the free cash flow to the firm (FCFF)?
$
The firm's interest expense is $24.00. Assume the tax rate is 40% and the net debt of the firm DECREASES by $5.00.
What is the free cash flow to equity (FCFE)?
$
What is the market value of equity if the FCFE is projected to grow at 4% indefinitely and the cost of equity is 11%? (Round this answer to 2 decimal places.)
$
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Emerging Markets And The Global Economy A Handbook
Authors: Mohammed El Hedi Arouri, Sabri Boubaker, Duc Khuong Nguyen
1st Edition
0124115497, 978-0124115491
