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Use the following information for Questions 10 - 14. A firm has provided you with the following financial data: Free Cash Flow to the Firm
Use the following information for Questions 10 - 14. A firm has provided you with the following financial data: Free Cash Flow to the Firm (FCFF) at t=1 $10,000,000, Target Debt/Equity Ratio Market value of debt Required return on equity Cost of debt Tax Rate Long run growth rate in FCFF Number of shares outstanding 0.40 11. What is the firm's WACC? $20,000,000 14% 8% 30% 4% 4,000,000 10. What is the firm's proportion of debt in the capital structure? 040% 036% 029% 025% ONone of the above are correct solutions O12.3% O11.6% 011.0% 010.8% ONone of the above are correct solutions 12. What is the value of the firm? O$131,578,947 O$122,198,221 O$110,866,542 O$108,886,940 ONone of the above are correct solutions 13. What is the value of the firm's equity? O$111,578,947 O$102,198,221 O$90,866,542 O$88,886,940 ONone of the above are correct solutions 14. What is the value of a common stock? O$25.55 O$22.72 O$27.89 O$22.22 ONone of the above are correct solutions
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