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Swamp & Sand Industries has the following data. Interest expense is expected to be $5 million next year, and FCF is expected to be $159
Swamp & Sand Industries has the following data. Interest expense is expected to be $5 million next year, and FCF is expected to be $159 million.The interest rate on debt is 6% and the unlevered cost of equity is 10%.The corporate tax rate is 40%. The constant annual growth rate for both FCF and interest expense is 4%.Calculate enterprise value using the Adjusted Present Value (APV) approach
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