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this is the full question but i just need the subsections e and f please Problem 2(a) 0.0/3.0 points (ungraded) Assume no taxes or other
this is the full question but i just need the subsections e and f please
Problem 2(a) 0.0/3.0 points (ungraded) Assume no taxes or other frictions. Master Minds (MM) Inc. is expected to have a free cash flow of $58.0 million next year, which will subsequently grow at 2.0 % a year forever. The cost of capital of MM is 10.0 % per year. The risk-free interest rate is 6.0 %. In addition, it also has a perpetual console bond outstanding, which pays $13.0 million per year, starting from next year. The bond is risk-free. (a) Compute the value of MM's console bond at time 0. million dollars Save Submit You have used 0 of 2 attempts Problem 2(b) 0.0/4.0 points (ungraded) (b) Compute the value of MM's equity at time 0. million dollars Save Submit You have used 0 of 2 attempts Problem 20) 0.0/2.0 points (ungraded) (c) Compute the debt/equity ratio of MM at time 0. Save Problem 2(d) 0.0/4.0 points (ungraded) (d) Compute MM's expected debt/equity ratio at time t=5, only taking into account free cash flows and debt payments from t=6 onwards. Save Submit You have used 0 of 2 attempts Problem 2(e) 0.0/3.0 points (ungraded) (e) What is the weighted average cost of capital (WACC) of MM at time 0? Save Submit You have used 0 of 2 attempts Problem 2) 0.0/2.0 points (ungraded) (f) Suppose the company plans to issue more debt at t=4 and to use the proceeds to buy back its stock. This will raise the debt-to-equity ratio to 5. What is the expected WACC at time t=5? 96 Save Submit You have used 0 of 2 attemptsStep by Step Solution
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