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The cashflows produced by the company starting next year, until the end of year 5 are $315mm. Thereafter in the terminal the company will grow
The cashflows produced by the company starting next year, until the end of year 5 are $315mm. Thereafter in the terminal the company will grow at a fixed rate of 0.5% per annum. The companys market value of debt is $2,000mm, and the cost of debt is 3.3%. The market capitalization if $3,200mm with beta of 0.8. The MRP of the S&P is 7% and the yield on treasuries is 3%. Tax rate is 35%. Use DCF to value the company.
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