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The MoMi Corporation s cash flow from operations before depreciation, interest, and taxes was $ 5 . 2 million in the year just ended, and

The MoMi Corporations cash flow from operations before depreciation, interest, and taxes was $5.2 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 18% of pretax cash flow each year. The tax rate is 21%. Depreciation was $360,000 in the year just ended and is expected to grow at the same rate as the operating cash flow. The appropriate market capitalization rate for the unleveraged cash flow is 9% per year, and the firm currently has debt of $7.1 million outstanding. Use the free cash flow from operations before depreciation, interest, and taxes. Find the value of the equity

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