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Task 3: The company's financials are given in the table below: Before-tax cost of debt 6% Cost of equity 12% Corporate income tax rate 30%
Task 3: The company's financials are given in the table below: Before-tax cost of debt 6% Cost of equity 12% Corporate income tax rate 30% Target capital structure: Debt: 40%. Equity: 60% Current free cash flow $25,000 Long-term constant growth rate in free cash flow 4.5% . Determine the weighted average cost of capital. Using the cash flow capitalization approach, estimate the company value
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