Question
Utility Co has been generating free cash flow of $20 million and the firm is not expected to grow. Its cost of equity equals 15%,
Utility Co has been generating free cash flow of $20 million and the firm is not expected to grow. Its cost of equity equals 15%, and the WACC is 14%. If the market value of the debt is $ 20million, the value of the equity for this firm using the free cash flow valuation approachis $___________million ?
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
