Question
Using the following information and CAPV, compute the total value of the target firm's equity. Answer in dollars with NO punctuation (e.g. 12 or 12000),
Using the following information and CAPV, compute the total value of the target firm's equity. Answer in dollars with NO punctuation (e.g. 12 or 12000), and round your answer to the nearest dollar. Do not include any negative signs, commas, dollar signs, or periods in your answer. Just numbers. WACC = 10%, Unlevered cost of equity = 12%, Current target FCFF = $76 million, Next-period target FCFF = $78 million Estimated growth rate in FCFF = 4%, Tax rate = 35%, Target pre-merger debt = $100 million Merger-related interest expense starting in Year 1 ($millions) = 10, 10, 10, 0 thereafter Target shares outstanding = 10 million
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