Question
You have been asked to do a discounted cash flow valuation of a firm and have been given the following partial inputs to the
You have been asked to do a discounted cash flow valuation of a firm and have been given the following partial inputs to the valuation Year Growth Rale EBIT(1-tc) Cost of Equity Cost of Debt Debt Ratio Return on Capital 20% 100 15.0% 7% 10% 25% 2 20% 120 25% The firm has a tax rate of 40%. Estimate the value of the firm today 14.5% 7% 20% 20% 14.0% 7% 30% 25% 5% 131.2 12.5% 7% 15%
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Management Science The Art Of Modeling With Spreadsheets
Authors: Stephen G. Powell, Kenneth R. Baker
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