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You need to estimate the value of ABC Company. The company has a beta of .90, the Treasury bill rate is 4%, and the market
You need to estimate the value of ABC Company. The company has a beta of .90, the Treasury bill rate is 4%, and the market risk premium is estimated at 8%. The capital structure is 30% debt, paying a 5% interest rate, and 70% equity. The company pays a tax rate of 40%. You have the following forecasts (in millions of dollars) of ABC
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