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The following are the projected cash flows to equity and to the firm as a whole for the next five years. The firm has
The following are the projected cash flows to equity and to the firm as a whole for the next five years. The firm has a cost of equity financing of 12% and a WACC of 9.94%. Year CF to Equity After Tax Int. Expense CF to Firm 1 250.00 90.00 340.00 2 262.50 94.50 357.00 3 275.63 99.23 374.85 4 289.41 104.19 393.59 5 303.88 109.40 413.27 Terminal 3,946.50 Value in Y5 6,000.00 What is the value of the equity alone, and what is the value of the total firm, respectively?
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