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Suppose Geo will have FCF next year of $1 million and expects FCF to grow at 4% in perpetuity. The firm has a pre-tax cost
Suppose Geo will have FCF next year of $1 million and expects FCF to grow at 4% in perpetuity. The firm has a pre-tax cost of debt of 4% and a cost of equity of 10%. The company maintains a debt-to-value ratio of 45% and the tax rate is 21%. What is the Enterprise Value of Geo? (Hint: you need to calculate a WACC first)
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