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Task 8: The Euroscore Co. eamed 30 million before interest and taxes on revenues of 80 million last year. Capital expenditures were 20 million, and

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Task 8: The Euroscore Co. eamed 30 million before interest and taxes on revenues of 80 million last year. Capital expenditures were 20 million, and depreciation was 15 million. The additions to working capital were 6 million. The firm's WACC is 12.45%, the marginal tax rate is 40%, and the expected cash flow growth is 5% The market value of debt is 35 million. Estimate the value of the firm's equity using the FCF model 1 Task 9 An equity investor has the following information about similar companies operating in the financial actor Multiple Alpha Beta Gamma P/B 1.10 0.60 0.60 P/E 8.40 7.10 9.30 Which of the companies is most likely undervalued? WE

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