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Year FCFE FCFF 1 $250.00 $340.00 2 $262.50 $357.00 3 $275.63 $374.85 4 $289.41 $393.59 5 $303.88 $413.27 Terminal value @ Year 5 $3,946.50 $6000
| Year | FCFE | FCFF |
| 1 | $250.00 | $340.00 |
| 2 | $262.50 | $357.00 |
| 3 | $275.63 | $374.85 |
| 4 | $289.41 | $393.59 |
| 5 | $303.88 | $413.27 |
| Terminal value @ Year 5 | $3,946.50 | $6000 |
The question above are the projected FCFE and FCFF over next five years. The firm has a cost of equity of 12% and WACC of 9.94% A) What is the value of the equity in this firm? B) What is the value of the firm?
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Financial Econometrics
Authors: Peijie Wang
1st Edition
0415426693, 978-0415426695
