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The Momi corporation cash flow from operation before interest and taxes was 2 million in the year just ended and it excepts that this will

The Momi corporation cash flow from operation before interest and taxes was 2 million in the year just ended and it excepts that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 20% pf pretax cash flow each year. The tax rate is 35%. Depreciation was 200000 in the year just ended and is expected to grow at the same rate as the opening cash flow. The appropriate ma rket capitalization rate for the unleveraged cash flow is 12% per year, and the firm currently has debt of 4 million outstanding. Use the free cash flow approach to value the firm's equity

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