Question
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 1 2 3 4 5 Terminal Value in Y5 CF to Equity 250.00 262.50 275.63 289.41 303.88 3,946.50 After Tax Int. Expense 90.00 94.50 99.23 104.19 109.40 CF to Firm 340.00 357.00 374.85 393.59 413.27 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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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
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