Use the following data for questions 10-16. ABC Corp's stock is currently trading at $40 per share. Assume that the cash flows for the firm are expected to grow at 8% per year for 2 years. Thereafter, the firm is expected to enter a stable-growth phase with a cash flow growth rate of 3%. Effective tax rate is 25%. The firm's debt carries a BBB credit rating. All in $ millions except per share amounts and percentages Net Income $250 Capital Expenditure $25 Depreciation expense $50 Interest expense $8 - $45 Change in Accounts Payable Change in Inventories Change in Accounts Receivable $25 - $50 MacBook Pro All in $ millions except per share amounts and percentages Net Income $250 $25 Capital Expenditure Depreciation expense $50 Interest expense $8 - $45 Change in Accounts Payable Change in Inventories - $25 Change in Accounts Receivable - $50 Total debt $1000 $100 Cash and cash equivalents Shares outstanding 88 1.25 1.5% Equity Beta Default spread on BBB rated firms Market risk premium Yield to maturity on 30-year Treasury 5.5% 2.5% MacBook Pro 3 pts Question 15 Assuming the current level of the Free Cash Flows is $402 million, what is the total value of equity for ABC Corp? O 8,250 million O 6,750 million O 8,550 million O 5,870 million MacBook Pro G Search or type URL Use the following data for questions 10-16. ABC Corp's stock is currently trading at $40 per share. Assume that the cash flows for the firm are expected to grow at 8% per year for 2 years. Thereafter, the firm is expected to enter a stable-growth phase with a cash flow growth rate of 3%. Effective tax rate is 25%. The firm's debt carries a BBB credit rating. All in $ millions except per share amounts and percentages Net Income $250 Capital Expenditure $25 Depreciation expense $50 Interest expense $8 - $45 Change in Accounts Payable Change in Inventories Change in Accounts Receivable $25 - $50 MacBook Pro All in $ millions except per share amounts and percentages Net Income $250 $25 Capital Expenditure Depreciation expense $50 Interest expense $8 - $45 Change in Accounts Payable Change in Inventories - $25 Change in Accounts Receivable - $50 Total debt $1000 $100 Cash and cash equivalents Shares outstanding 88 1.25 1.5% Equity Beta Default spread on BBB rated firms Market risk premium Yield to maturity on 30-year Treasury 5.5% 2.5% MacBook Pro 3 pts Question 15 Assuming the current level of the Free Cash Flows is $402 million, what is the total value of equity for ABC Corp? O 8,250 million O 6,750 million O 8,550 million O 5,870 million MacBook Pro G Search or type URL