Question
The current free cash flow to equity (FCFE) of a firm is $269. If the risk-free rate is 3.60%, the beta of the stock is
The current free cash flow to equity (FCFE) of a firm is $269. If the risk-free rate is 3.60%, the beta of the stock is 1.60 and the equity market risk premium is 7.67%, what is the current market value of equity of this stock if the FCFE is expected to grow at 1.72% in perpetuity?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
9th Edition
0321598903, 978-0321598905
