Question
You are given the following information for a firm: Free Cash Flow = $50 million Corporate Tax Rate = 40% Debt Equity Ratio = 0.5
You are given the following information for a firm:
Free Cash Flow = $50 million
Corporate Tax Rate = 40%
Debt Equity Ratio = 0.5
Growth Rate of FCF = 3%
Equity Beta = 1.2
Risk Free Rate = 2.4%
Market Risk Premium = 6%
Debt Outstanding = $50 M
Using the above data, if there are 3 M shares outstanding, what is the value per share?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
