Question
The free cash flow to the firm is $200 million in perpetuity, the cost of equity equals 10%, and the WACC is 8%. If the
The free cash flow to the firm is $200 million in perpetuity, the cost of equity equals 10%, and the WACC is 8%. If the market value of the debt is $1 billion, what is the value of the equity using the free cash flow valuation approach?
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
